International relations
The Central Bank of Malta forms part of the European System of Central Banks (ESCB) and the Eurosystem.
The ESCB is composed of the European Central Bank (ECB) and the national central banks (NCBs) of all European Union Member States.
As the central bank of a Member State which has adopted the euro, the Central Bank of Malta also forms part of the Eurosystem, the central banking system of the euro area. The Eurosystem is composed of the ECB and the NCBs of the EU Member States that have adopted the euro.
Apart from the ECB and the Central Bank of Malta, the Eurosystem also has as participants:
Banque Nationale de Belgique, Deutsche Bundesbank, Eesti Pank, Central Bank of Ireland, Bank of Greece, Banco de España, Banque de France, Banca d'Italia, Central Bank of Cyprus, Latvijas Banka, Lietuvos bankas, Banque centrale du Luxembourg, De Nederlandsche Bank, Oesterreichische Nationalbank, Banco de Portugal, Banka Slovenije, Národná banka Slovenska, and Suomen Pankki.
The other members of the ESCB include:
Bulgarian National Bank, Ceská Národní banka, Danmarks Nationalbank, Hrvatska Narodna Banka, Magyar Nemzeti Bank, Narodowy Bank Polski, Banca Nationala a României, Sveriges Riksbank, and Bank of England.
The Governor of the Central Bank of Malta has been a member of the General Council of the ECB since 1 May 2004, when Malta joined the European Union, and a member of the ECB's Governing Council since 1 January 2008, when Malta adopted the euro as its currency.
The Governor has also been a member of the General Board of the European Systemic Risk Board (ESRB) since its establishment on 1 January 2011.
The Governor and Deputy Governor are respectively, the Governor and Alternate Governor for Malta on the Board of Governors of the International Monetary Fund (IMF). The IMF maintains close links with the monetary authorities in member states to fulfil its own obligations to ensure a stable international monetary and exchange rate system. The close relationship between Central Bank of Malta and the IMF stems from statutory obligations assumed when Malta joined the Fund in 1968. It is responsible for conducting all Malta's financial transactions with the Fund.
The Governor is also Alternate Governor for Malta on the Board of Governors of the European Bank for Reconstruction and Development (EBRD) and of the Asian Infrastructure Investment Bank (AIIB). He also attends the Annual General Meeting of the Bank for International Settlements (BIS) in an observer capacity.
The Bank regularly monitors developments within all these institutions and co-operates with such institutions in furthering the implementation of new initiatives falling within their mandate, particularly those related to international monetary and financial stability and economic development.
The Bank also advises the Ministry for Finance on selected issues arising from Malta’s membership in the International Bank for Reconstruction and Development (IBRD) and in the Multilateral Investment Guarantee Agency (MIGA), which are institutions of the World Bank Group.
The Governor accompanies the Minister for Finance at the informal meetings of the Economic and Financial Affairs (ECOFIN) Council of the EU.
Officials from the Central Bank of Malta participate in various committees of the EU, the ESCB and the ESRB. Senior officials take part in the Economic and Financial Committee (EFC) which advises the Council on economic and financial matters. Other staff members participate in the Committee for Monetary, Financial and Balance of Payments Statistics (CMFB), which assists the European Commission in drawing up and implementing work programmes concerning statistical issues.
Bank officials also accompany the representatives of the Malta Financial Services Authority (MFSA) at meetings of the European Banking Authority (EBA).
The Central Bank of Malta and the MFSA are signatories to two memoranda of understanding between the ECB, the NCBs and the supervisory authorities of the ESCB: the 2003 Memorandum of Understanding on the ‘High Level Principles of Cooperation between the Banking Supervisors and Central Banks of the EU in Crisis Management Situations', and the 2001 Memorandum of Understanding on ‘Co-operation between Payment Systems Overseers and Banking Supervisors in Stage Three of the Economic and Monetary Union’. Furthermore, the Central Bank of Malta, together with the MFSA and the Ministry for Finance are signatories to the 2008 Memorandum of Understanding on ‘Cooperation between the Financial Supervisory Authorities, Central Banks and Finance Ministries of the European Union on Cross-Border Financial Stability’ to facilitate the management and resolution of cross-border systemic financial crises.
Memorandum of Understanding
Cross-border financial stability (307kb)