The Central Bank of Malta held its annual financial stability seminar, bringing together regulators and industry experts to discuss how rapid technological change, particularly artificial intelligence (AI), is reshaping financial stability risks. In opening remarks, Governor Professor Edward Scicluna highlighted that AI offers substantial opportunities but also introduces new and complex risks, pointing to the importance of transparent communication, sound judgement, collective preparedness, and maintaining public trust and policy credibility. The programme featured a keynote address by Paul Hiebert, Head of the Systemic Risk and Financial Institutions Division at the European Central Bank, and presentations of the Bank’s latest financial stability work. This included a network model for the Maltese banking system, updated stress testing results, an assessment of the effectiveness of Directive 16, and research on the macro-financial determinants of insurance activity. A panel discussion on “Artificial Intelligence – Implications for Financial Stability” brought together representatives from the Central Bank of Malta, European Central Bank, Malta Bankers’ Association, Malta Digital Innovation Authority, Malta Financial Services Authority, and the University of Malta, focusing on AI opportunities, risks, and the case for responsible innovation.
Central Bank of Malta 2025-11-10
Central Bank of Malta convenes financial stability seminar focused on artificial intelligence risks and new systemic risk analysis
The Central Bank of Malta's annual financial stability seminar focused on the impact of rapid technological change, particularly AI, on financial stability risks. Governor Professor Edward Scicluna emphasized AI's opportunities and risks, highlighting the need for transparent communication and collective preparedness. The event featured a keynote by Paul Hiebert of the European Central Bank and discussions on AI's implications for financial stability.