The Central
Bank of Malta Act (Cap. 204) (‘the Act’)
was originally published by means of Act XXXI of 1967. It has
been amended a number of times, most recently by Acts I and IV
of 2007 in order to provide for the Bank’s membership
within the Eurosystem.
The Act is arranged as follows:
| |
|
Articles |
| Part I |
Preliminary |
1 - 2 |
| Part II |
Establishment
and Conduct of Affairs of Bank |
3
- 18 |
| Part III |
Financial
Provisions |
19
- 22 |
| Part IV |
Collection
of Information |
23
- 24 |
| Part V |
Relations
with Government |
25
- 29 |
| Part VI |
Relations
with Credit and Financial Institutions |
30
- 33 |
| Part VII |
Payment
Systems |
34
- 35 |
| Part VIII |
Relations
with the Competent Authority |
36
- 38 |
| Part IX |
Relations
with International and other Organisations |
39
- 41 |
| Part X |
Currency |
42
- 55 |
| Part XI |
General |
56
- 61 |
| Part XII |
Transitional
Provisions for the Maltese Lira |
62 - 63 |
|
Schedule |
|
The Central Bank of Malta is a body corporate established under article 3 of
the Act. In terms of article 4 of the Act, the primary objective of the Central
Bank of Malta is to maintain price stability. The Central Bank of Malta is a
fully independent body in terms of article 5(2) of the Act, Article 7 of the
ESCB Statute, and Article 108 of the EC Treaty. It enjoys institutional and financial
independence, while its Governors enjoy a high degree of personal independence.
By virtue of article 5 of the Act, the Bank has the following tasks:
•
to implement monetary policy
•
to hold and manage reserve assets
•
to ensure the stability of the financial system
•
to promote a sound and efficient payment system
•
to provide for the circulation of euro bank notes
•
to provide for the circulation of euro coins issued for and on behalf
of the Government
•
to advise the Government generally on financial and economic matters
•
to compile and publish statistics as may be necessary to carry out its
tasks.
The Central Bank of Malta acts as banker and adviser to government, but may not
provide financing, credit or overdrafts to the Government of Malta or to any
public undertaking, as required by the monetary financing prohibition laid down
in article 27 of the Act as well as Article 101(1) of the EC Treaty.
The Central Bank of Malta also maintains direct relations with credit and financial
institutions. The legal basis of this relationship and its implications are included
in articles 30 to 33 of the Act. In accordance with the provisions of these articles,
the Bank:
• may act as banker to credit and financial institutions;
• may accept deposits from credit and financial institutions;
• may appoint credit institutions as agents in exceptional circumstances;
• shall seek co-operation and shall co-operate with credit and financial
institutions;
and
• is to oversee and regulate the operation of, and participation in, payment
systems.
In implementing monetary policy, in accordance with the Statute of the European
Central Bank, the Bank is further authorised to require credit institutions to
open and maintain reserve deposit accounts and report thereon.
The Act also empowers the Bank to require reporting agents, which include
credit and financial institutions, to submit such statistical or other
information as
it may require for the fulfilment of its duties in terms of the Act itself.
Subsidiary legislation
The following subsidiary legislation is currently in force
under the Central
Bank of Malta Act (Cap. 204):
|
