Malta: Financial Sector Assessment Program-Technical Note-Macroprudential Policy Framework and Tools
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
This technical note evaluates the domestic macroprudential policy framework in Malta and provides recommendations to strengthen it. It assesses: the domestic institutional arrangements; the systemic risk monitoring framework; and the macroprudential policy toolkit. It also assesses current financial vulnerabilities in Malta to develop specific policy recommendations. The paper also reviews the current domestic institutional arrangements and provides recommendations and discusses the existing systemic risk monitoring framework and provides options to enhance it further. The legal backing of inter-agency coordination could be further strengthened. The report highlights that the planned introduction of borrower-based measures is a welcome step to proactively address a build-up of vulnerabilities in the housing and household sectors. There is scope to refine the design of the planned borrower-based measures to reduce uncertainty over policy effects. The Central Bank of Malta plans to introduce borrower-based measures to proactively address the potential build-up of vulnerabilities in the housing and household sectors.
Series:
Country Report No. 2019/349
Subject:
Banking Financial institutions Financial sector policy and analysis Financial sector stability Loans Macroprudential policy Mortgages Systemic risk assessment
English
Publication Date:
November 21, 2019
ISBN/ISSN:
9781513520933/1934-7685
Stock No:
1MLTEA2019008
Pages:
29
Please address any questions about this title to publications@imf.org