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 Central Bank of Malta Directive No. 11 and Malta Financial Services Authority Banking Rule 15. Serving as a macro-prudential tool, the O-SII introduces a capital surcharge for institutions considered systemically important, enhancing their resilience and mitigating financial stability risks. In the 2024 decision statement, Bank of Valletta plc, HSBC Bank Malta plc, MDB Group Ltd and APS Bank plc are reaffirmed as O-SIIs, outlining their corresponding capital buffer rates as follows:
Designated O-SIIs and Effective Capital Buffer Rates:
Credit Institution | Fully-loaded O-SII Capital Buffer Rates |
Bank of Valletta plc | 2.00% |
HSBC Bank Malta plc | 1.25% |
MDB Group Ltd | 1.00% |
APS Bank plc | 0.50% |
O-SII Statement of Decision - Read Decision