|
The Central Bank of Malta is banker to the Government and the local commercial
banks. It provides the banks with liquidity whenever required through
open market operations and collaterilised intra-day lending. The Bank
participates in, and operates TARGET2Malta, which forms part of TARGET2
of the Eurosystem. It also supports the clearing of retail inter-bank
payments through the operation of the Malta Clearing House for daily
settlement through TARGET2.
Deposit money banks maintain call and term deposit balances with the Bank.
If need be they may obtain short-term loans and advances from the Bank
secured by pledging or depositing specified assets with the Bank. In addition
to the open market operations mentioned above, the Bank can provide refinancing
facilities to the banks by purchasing eligible assets at a discount.
As part of the conduct of monetary policy, the Central Bank of Malta requires
credit institutions to maintain reserve deposits with the Bank. As from
1 January 2008, the Central Bank of Malta has adopted the ECB’s minimum
reserve system. The legal framework for this system is laid down in Article
19 of the Statute of the ESCB, Council Regulation (EC) No 2531/98 of 23
November 1998 concerning the application of minimum reserves by the ECB
and Council Regulation (EC) No 1745/2003 of the ECB on the application
of minimum reserves (ECB/2003/9). The reserve requirement of each institution
is determined in relation to the reserve base. Balance sheet data referring
to the end of a given calendar month is used to determine the reserve base
for the maintenance period starting in the calendar month two months later.
The Bank also acts as banker to a number of public sector institutions
to which it provides various banking facilities, including deposit accounts
and foreign exchange services.
Terms & Conditions for Government Deposits held with
the Central Bank of Malta
| • |
All accounts must
be maintained in credit. There is no overdraft facility.
When funds on an account are insufficient to cover a
payment, the payment will not be effected.
|
| • |
The Government cannot draw
funds against uncleared effects, and interest on euro
accounts start to accrue when the uncleared effects have
been settled.
|
| • |
There is no charge for transactions
over the accounts.
|
| • |
A copy of current authorised
signatures should be provided and updated whenever any
changes occur.
|
| • |
Back valuations are not permitted.
|
| • |
The accounts are interest
bearing. The rate on accounts is based on the Minimum
Bid Rate of the European Central Bank. On deposits expressed
in foreign currency, the rate is based on the weekly
average interest rate on the Bank’s Nostro Accounts – less
a small margin.
|
| • |
Central Bank of Malta cut-off
time for payment orders is 14.30. |
Data Protection Notice for Electronic Payments
| • |
Personal data
in relation to transactions effected via SWIFT (Society
for Worldwide Interbank Financial Telecommunication)
may be required to be disclosed to the United States
authorities in order to comply with legal requirements
applicable in the United States for the prevention
of crime. |
Malti |
