The Malta Finance Minister, the Hon. Mr Tonio Fenech, has successfully pleaded Malta’s case before the EU member states’ Finance Ministers for greater flexibility of Maltese authorities to regulate the local banking industry. New rules for banking regulation were proposed at EU level to bolster the financial stability of banks; these include raised capital requirements and the introduction of counter cyclical measures.
Malta banks have proven impervious to both the 2007–2009 global financial crisis, and the more recent economic trouble of certain member states. Malta banks hold strong liquidity, with an average ratio of about 48% and the capital adequacy average of 14% to 15%. They also maintain a Tier 1 capital of more than the minimum 9% threshold which will be imposed throughout the EU member states by June 2012.
The concession granted to Malta will permit the Malta Financial Services Authority to impose stricter measures than those proposed by at EU level without the requirement of prior approval by the Commission. This ensures that Malta will be able to carry on pre-empting threats to the local banking industry and help ensure its continued success.
