Malta’s financial services sector continued to expand in 2015
Malta’s financial services sector continued to expand in terms of size, reputation and attractiveness in 2015, backed by a resilient regulatory framework, prudential supervision, consumer protection, and strong money laundering prevention mechanisms.
New licences, issued during 2015, were registered most notably in the payment services, electronic money and alternative investment management sectors. Growth in the sector also expanded in terms of employment opportunities both within the direct financial intermediation segment and other related professionals’ services activities. The robustness of the sector is reflected in healthy capital and liquidity levels held by banks, the continued registration of funds and investment vehicles and a growing insurance industry within a comprehensive and strengthened regulatory environment
Introducing the Annual Report, MFSA Chairman Professor Joe Bannister noted that “the world economy stumbled in 2015 but it was a different story in Malta mwhere the economy experienced impressive growth, with financial services playing an important role in that. The Malta Financial Services Authority ensured good governance but also underwent major internal restructuring to make it future proof. This was a year in which the MFSA continued to strengthen the regulatory and supervisory regime. It was a year of robustness and results.”
The financial services industry plays a big part in the economic development of Malta. 90% of Foreign Direct Investment is in this sector, which has been expanding by about 25% a year in recent times. The sector makes up 8.5% of the GDP of Malta and is a major player in creating jobs. The World Economic Forum Competitiveness Report 2015-2016 ranks Malta highly. It places Malta 15th out of 148 for soundness of the banking system; 20th for strength of auditing and reporting standards; m25th for the regulation of stock exchanges.
Prof. Bannister added that “the best course for Malta is to not only maintain its reputation but to enhance it. During 2015, the Authority continued to strengthen the regulatory and supervisory regime. The financial crisis had revealed serious shortcomings in the tools available to authorities for preventing or addressing systemic bank failures, hence the Bank Recovery and Resolution Directive (BRRD), creating the Resolution Authority, the Resolution Committee and the Resolution Unit within the MFSA, came into force in July 2015 and the Regulations in September 2015.”
The Annual Report provides full details with regards to licencing developments, to efforts aimed at enhancing consumer protection as well as to key legislative and regulatory developments in the financial services industry. Particularly, the Insurance and Reinsurance Solvency II directive was transposed after a two-year preparation period. The MFSA worked with insurance and reinsurance undertakings as they adapted to its requirements. Ongoing developments include activity related to the implementation of CRD IV/V, MiFID II, the Transparency Directive and UCITS V.
The MFSA Annual Report 2015 and the financial statements for year ending 31st December 2015, are available for download from: http://goo.gl/cYWEG3.
Source: MFSA
