Financial Stability Newsroom

The size of the Non-Bank Financial Institutions (NBFI) sector across the globe decreased in 2022; the first notable decrease since 2009, which can be largely attributed to the impact of higher interest rates on asset valuations. Since 2017 investment funds have driven changes in NBFI asset levels ...

The European Central Bank publishes a focus article in the Macroeconomic Bulletin No. 23 proposing a simple and broad quantitative indicator to measure the effective macroprudential space. Macroprudential capital buffers are a key tool in the regulatory framework for banks, helping to ensure a stabl ...

The Central Bank of Malta and the MFSA have released the 2024 decision statement, addressing the identification of O-SIIs and the corresponding capital buffer calibration. This statement delves into the crucial role of the O-SII capital buffer within the CRD/CRR framework, as legally established in ...

The IMF report, dated 23 November 2023, highlights that Malta has marked an impressive recovery from the pandemic and has shown considerable resilience to shocks stemming from international geopolitical tensions. With weaker external demand and waning post-COVID-19 lockdowns pent-up demand, growth i ...

To assess the impact of the Basel III framework on banks, the Basel Committee on Banking Supervision monitors the effects and dynamics of the reforms. For this purpose, a semi-annual monitoring framework has been set up on the risk-based capital ratio, the leverage ratio and the liquidity metrics us ...

This issues note describes a high-level approach to addressing risks in investment funds that invest in assets which are either inherently illiquid or might become illiquid in times of stress. In particular, the note focuses on investment funds with large exposures to corporate debt and real estate. ...

The European Banking Authority (EBA) has published the results of its 2023 EU-wide stress test, which involved 70 banks from 16 EU and EEA countries, covering 75% of the EU banking sector assets. This stress test allows supervisors to assess the resilience of EU banks to a common set of adverse econ ...

The 2023 edition of the EU Non-bank Financial Intermediation Risk Monitor (NBFI Monitor) analyses systemic risks and vulnerabilities associated with investment funds and other financial institutions. For the first time, this edition extends the monitoring universe to crypto-assets as well as stablec ...

The 2023 edition of the OECD Sovereign Borrowing Outlook analyses the impact of increased macroeconomic and geopolitical uncertainty on sovereign borrowing needs and borrowing conditions. The key findings include: Sovereign borrowing needs are expected to increase in 2023 as many OECD countries ...

The European Systemic Risk Board (ESRB) has published a report outlining the systemic implications of crypto markets and proposing policy options to address the risks stemming from crypto-assets and decentralised finance (DeFi). The report finds that while this past year has been turbulent for cr ...