The Malta Financial Services Authority and the Central Bank of Malta have published a feedback statement on the responses received from the industry related to the consultation published on the 5th of November on the methodology used for the identification of other systemically important institutions and the calibration of the related capital buffer, under Article 131 of the CRDIV.
The consultation document outlined a proposed framework for the development and application of the Other Systemically Important Institutions (O-SII) buffer to strengthen the resilience of the domestic financial system. This buffer consists of a capital surcharge applied to institutions that may, in the event of failure or impairment, impact considerably the financial system and the real economy.
It is also an essential element of the ESRB Recommendation on the intermediate objectives and instruments of macro-prudential policy, and is a macro-prudential tool pursuant to Article 131 CRD as transposed in Banking Rule BR/15/2015 – Capital Buffers of Credit Institutions Authorised under the Banking Act 1994 and Central Bank of Malta Directive No. 11 – Macro-prudential Policy. The CBM and the MFSA are jointly responsible for the implementation of Article 131 CRD in Malta pursuant to the Central Bank of Malta Act (Appointment of Designate Authority to implement Macro-Prudential Instruments) Regulations, 2014 [L.N. 29 of 2014].
After taking into account the feedback received from the industry, the Authorities will be publishing a statement of decision on the methodology on the identification and calibration of O-SII buffers. The decision will contain the list of credit institutions falling within scope of this measure together with their corresponding capital buffers.
MFSA Newsletter - December 2015
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