The Central Bank of Malta held its annual Forum for Financial Stability, focusing on how growing interconnectedness and uncertainty are increasing the complexity of risks to Malta’s financial system. Governor Alexander Demarco called for a more forward-looking and holistic macroprudential approach, supported by stronger analytical tools and scenario-based analysis, as vulnerabilities may remain hidden before materializing abruptly. The forum covered the bank’s systemic risk heatmap, a survey of domestic banks’ risk perceptions, indicators of climate-related physical risks and the latest banking sector stress tests under adverse scenarios. It also reviewed areas of regulatory simplification under discussion by European Union institutions, with the bank emphasizing proportionate, risk-based regulation and continued dialogue with market participants.
Central Bank of Malta2026-06-19
Central Bank of Malta reviews emerging financial stability risks and bank resilience at annual forum
The Central Bank of Malta’s annual financial stability forum examined increasingly complex and interconnected risks to the Maltese financial system. Discussions covered systemic risk monitoring, banks’ risk perceptions, climate-related physical risks, regulatory simplification and stress testing under adverse scenarios.