to implement Macro-Prudential Instruments) Regulations, 2014

L.N. 29 of 2014

CENTRAL BANK OF MALTA ACT

(CAP. 204)

Central Bank of Malta Act (Appointment of Designate Authority

to implement Macro-Prudential Instruments) Regulations, 2014

IN exercise of the powers conferred by subarticle (2) of article

60 of the Central Bank of Malta Act, the Minister for Finance, after

consultation with the Central Bank of Malta, has made the following

regulations:-

(1) The title of these regulations is the Central Bank of Citation, scope

Malta (Appointment of Designate Authority to implement Macro- and

commencement.

Prudential Instruments) Regulations, 2014.

(2) The scope of these regulations is to implement the

provisions of Directive 2013/36/EU of the European Parliament and

of the Council of 26 June 2013 on access to the activity of credit

institutions and the prudential supervision of credit institutions and

investment firms, amending Directive 2002/87/EC and repealing

Directives 2006/48/EC and 2006/49/EC, hereinafter referred to as

"the Directive" and the provisions of Regulation (EU) No 575/2013

of the European Parliament and of the Council of 26 June 2013 on

prudential requirements for credit institutions and investment firms

and amending Regulation (EU) No 648/2012, hereinafter referred to

as "the Regulation".

(3) These regulations shall be deemed to have come into force

on the 31st December, 2013.

(1) The Minister for Finance hereby appoints the Appointment of

Central Bank of Malta as the Designate Authority for the purposes of designate

authority.

Article 133(2) of the Directive to set the systemic risk buffer and

identify the sets of institutions to which it applies and for the purposes

of Article 136(1) of the Directive to set the countercyclical buffer rate

for Malta.

(2) The Minister for Finance hereby appoints the Central Bank

of Malta, which shall act jointly with the competent authority, as the

Designate Authority for the purposes of Article 131(1) of the

Directive to identify, on a consolidated basis, global systemically

important institutions (G-SIIs), and, on an individual, sub-

consolidated or consolidated basis, as applicable, other systemically

important institutions (O-SIIs), which have been authorised within

Malta.

(3) The Minister for Finance hereby appoints the Central Bank

of Malta as the Designate Authority for the purposes of Article 458(1)

of the Regulation to identify changes in the intensity of macro-

prudential or systemic risk in the financial system with the potential

to have serious negative consequences to the financial system and the

real economy in Malta and which that authority considers would

better be addressed by means of stricter national measures, to draft

national measures for domestically authorised institutions, or a subset

of those institutions, intended to mitigate the changes in the intensity

of risk and concerning the level of own funds laid down in Article 92

of the Regulation, the requirements for large exposures laid down in

Article 392 and Articles 395 to 403 of the Regulation, the public

disclosure requirements laid down in Articles 431 to 455 of the

Regulation, the level of the capital conservation buffer laid down in

Article 129 of the Directive, liquidity requirements laid down in Part

Six of the Regulation, risk weights for targeting asset bubbles in the

residential and commercial property sector, or intra financial sector

exposures, and to be in charge of the application of Article 458 of the

Regulation.

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