The Malta Financial Services Authority has published an assessment of how prepared Maltese banks are for the amended EU banking rules known as CRR3, drawing on an industry-wide survey conducted in 2024. It found that most banks are on track to comply and that the majority of local banking sector assets are held by institutions assessed as highly or reasonably prepared, although some banks still need to do more to meet the new requirements. The MFSA highlighted changes to EU rules on credit risk, the new operational risk framework, and Environmental, Social, and Governance (ESG) requirements as likely to have the greatest impact on local credit institutions. It expects banks to step up implementation efforts to strengthen overall risk identification and risk management, including by updating internal frameworks, policies and procedures. Many banks are investing in staff training, with 73% focusing on ESG and operational risk training, while others are building expertise in credit and leverage risk. Supervision will continue through ongoing engagement with banks, and the MFSA pointed firms to a “Dear CEO Letter” sent to all credit institutions for further detail on the survey findings.
Malta Financial Services Authority 2025-04-07
Malta Financial Services Authority assesses banks’ CRR3 preparedness and calls for stronger credit, operational and ESG risk implementation
The Malta Financial Services Authority assessed Maltese banks' readiness for amended EU banking rules, CRR3, finding most are on track, though some need further efforts. Key impacts include changes to credit risk, operational risk, and ESG requirements, prompting banks to enhance risk management and staff training. Ongoing supervision will involve continued engagement, with further details in a "Dear CEO Letter" to credit institutions.