Article 5 of the Central Bank of Malta Act charges the Central Bank of Malta to ensure the stability of the financial system. In fulfilling this statutory obligation, the Central Bank of Malta plays a key role in maintaining the stability of the domestic financial system, whilst further contributing to that of the Eurosystem. The Central Bank of Malta defines financial stability as a condition where the financial system – comprising institutions, markets and infrastructures – is able to allocate savings into investments opportunities and facilitate the settlement of payments efficiently; manage risks that may harm or threaten to harm its performance and consequently that of the economy; and absorb shocks without allowing the formation of cumulative processes that may impair its operations.

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