19/06/2026 13:01:00

Central Bank of Malta holds its annual Forum for Financial Stability

The Central Bank of Malta hosted its annual Forum for Financial Stability on 19 June 2026 at Binja Laparelli. The Forum, entitled Financial Stability: Balancing Resilience and Complexity, brought together key stakeholders from across the financial services industry and provided a platform to discuss emerging challenges and developments shaping financial stability in Malta.

The Forum was chaired by Alan Cassar, Chief Officer for Financial Stability and Statistics.

In his opening remarks, Governor Alexander Demarco emphasised that financial stability risks are becoming increasingly complex and are no longer confined to the traditional boundaries of the financial system. In an environment marked by heightened uncertainty and growing interconnectedness, he noted that vulnerabilities may remain hidden for prolonged periods before materialising abruptly with significant consequences. He underlined the need for a more forward-looking and holistic macroprudential approach, supported by stronger analytical tools and scenario-based analysis, to safeguard resilience.

The Bank's heatmap framework was subsequently presented by Christian Mamo, Principal Economist within the Financial Stability Surveillance and Risk Assessment Department. The framework provides a structured overview of systemic risks by identifying emerging pressure points alongside areas where resilience has been maintained. Andrew Spiteri, Deputy Head within the same Department, then presented the results of the Central Bank of Malta's Risk Identification Survey, which assessed risk perceptions across a sample of domestic banks. The survey informed a panel discussion on key risk perceptions and highlighted the importance of continued dialogue between authorities and market participants.

The panel featured contributions from the following panellists: Giovanni Bartolotta from APS Bank plc, Kenneth Farrugia from Bank of Valletta plc, Josef Borg Fiorentino from FCM Bank Ltd, Jenny Bartolo from IIG Bank (Malta) Ltd, and Alan Cassar from the Central Bank of Malta. The panel was moderated by Wendy Zammit, Head of Financial Stability Surveillance and Risk Assessment Department within the Central Bank of Malta.

Further sessions focused on the Bank's work on analytical indicators of climate-related physical risks, presented by Roxanne Spiteri, Statistician and Kristen Carabott, Principal Statistician, reflecting the growing relevance of environmental factors in financial stability analysis. Mariah Dimech and Paul Giordmaina, Principal Economists within the Macroprudential Policy, Stress Testing and Research Department, outlined the main areas of regulatory simplification currently under discussion by EU Institutions including the European Commission and the ECB, in fora in which the Bank is actively involved.

The programme concluded with a presentation by Kanan Musayev, Senior Economist from the same department, on the latest stress testing results, which provided additional insights into the resilience of the banking sector under adverse scenarios.

In his closing remarks, Deputy Governor Oliver Bonello highlighted that, in an increasingly complex and uncertain environment, safeguarding financial stability requires resilience to evolve alongside both traditional and emerging risks. He underlined the importance of forward-looking risk assessment, proportionate and risk-based regulation, and continued dialogue among stakeholders to preserve the resilience of the Maltese financial system.

Photo: Melvin Bugeja/Central Bank of Malta

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