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News - Media Releases 2018

16/05/2018

Central Bank of Malta replies in respect of Pilatus Bank plc

Reference is made to the report of 16 May 2018 on the Times of Malta online entitled "Pilatus creditors being paid via Central Bank" and the reproduced tweet by the Hon MP Dr Jason Azzopardi in the same article.

The Central Bank of Malta would like to clarify that, in line with its basic function of acting as banker to the banks, all credit institutions licensed by the MFSA, including the one referred to in the said article, are obliged at law to operate a reserve deposit account with the Central Bank of Malta.

With reference to the specific credit institution referred to in the said article, following the appointment on 22 March 2018 by the MFSA of a competent person in terms of Article 29(1)(c) of the Banking Act and Article 15A(1)(b) and (c) of the Investment Services Act, and following consultation with the MFSA, each transaction undertaken by the said credit institution through its account held at the Central Bank of Malta is conducted with the explicit approval of the said competent person. This is in line with the administrative measures implemented by the MFSA, and therefore, there was no new measure taken by the Central Bank of Malta that needed to be communicated to the public. Such transactions by this credit institution, like all transactions by all licensed credit institutions, are effected by the staff of the Central Bank of Malta's Payments and Banking Department.  

The Central Bank of Malta categorically denies that the Office of the Prime Minister exerted any kind of pressure on the Central Bank of Malta on any matter. 

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