Consultation on the proposed amendments to Directive no.11 on ‘Macro-prudential policy’

The Central Bank of Malta is proposing amendments to Directive no.11 on ‘Macroprudential Policy’ issued in terms of the Central Bank of Malta Act (Cap. 204) to transpose elements of the revised Capital Requirements Directive (CRD V) falling under the responsibility of the Central Bank of Malta (CBM). As per Legal Notice 29 of 2014 (Appointment of Designate Authority to implement Macroprudential Instruments), the CBM is the authority responsible for setting the systemic risk buffer and for identifying the institutions to which it applies; periodically setting the countercyclical capital buffer rate for Malta to be applied by institutions on domestic exposures when calculating their institution-specific countercyclical capital buffer; and for identifying, jointly with the competent authority, global and other systemically important institutions authorised in Malta and the respective applicable capital  buffer.

As a result, amendments made to the Capital Requirements Regulation (CRR) and the CRD IV (i.e. CRR II and CRD V), which were published in the Official Journal of the European Union on 7 June 2019, necessitated the need to amend Directive no.11 to transpose the applicable provisions relating to the CBM’s responsibilities. These changes are being outlined in the attached consultation paper and revised Directive no.11.​