11/11/2026 13:30:00

Financial Stability Seminar: The new risk frontiers

The Central Bank of Malta held its annual Financial Stability Seminar on 11 November 2026 at Binja Laparelli. This event brought together regulators and industry professionals to discuss emerging risks and evolving vulnerabilities facing the financial system in an increasingly complex and interconnected world.

In his opening address, Mr Alexander Demarco, Governor of the Central Bank of Malta, reflected on the evolution of financial stability analysis and the broadening of the risk landscape, where traditional financial risks increasingly interact with novel risks associated with rapid technological advancements, geopolitical fragmentation, and climate change. Against this backdrop, the Governor underscored the importance of robust governance and forward-looking monitoring frameworks to support the resilience of the financial system in this evolving environment.

Guests were also addressed by Dr Tuomas Peltonen, Deputy Head of the Secretariat of the European Systemic Risk Board, who delivered the keynote speech on artificial intelligence (AI) and systemic risk. In his second presentation, on mapping the EU financial system, Dr Peltonen examined interconnections between banks, insurers, investment funds, and financial infrastructures and their role in the transmission of shocks across the financial system.  The programme also featured a presentation on the use of payment system data to support cyber stress testing in Malta.

Photo: Melvin Bugeja/Central Bank of Malta

Mr Kasperi Korpinen, Senior Economist at the Bank of Finland, delivered a presentation on the use of financial market infrastructure simulations to cyber stress testing.  The seminar also showcased research and analytical work on issues relevant for financial stability. These included the development of tools for assessing banks' vulnerability to geopolitical risks, the role of bank credit in financing residential property purchases in Malta, and research on the cost of equity of Maltese banks.

In his concluding remarks, Mr Oliver Bonello, Deputy Governor for Financial Stability, advocated a forward-looking, evidence-based approach to financial stability. He highlighted AI's opportunities alongside sound governance, safeguards and operational resilience. He emphasised the need to assess the interactions between technological, cyber and geopolitical risks alongside established vulnerabilities. He mentioned the importance of early preparation for quantum computing's potential threats to cryptographic security. He reaffirmed the Bank's continued investment in granular data, analytical frameworks, scenario analysis and stress testing, supported by cooperation between local and international experts to address the evolving risk landscape.

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