With reference to the S&P global ratings research update on Bank of Valletta plc published on 1 August 2018, The MFSA reaffirms that the banking sector in Malta remains resilient and profitable with local banks benefiting from a steady operating environment and an expanding economy. Bank of Valletta plc is subject to direct supervision of the ECB, although the MFSA engages on an ongoing basis both with the ECB and Bank of Valletta. The MFSA is confident that all de-risking measures including potential risks relating to legacy litigation are being addressed strategically by BoV within a long term view of the business.

With reference to S&P’s comments regarding the governance of the financial services sector in Malta, the MFSA has always supervised the banking sector very closely and continues to do so within a dynamic regulatory environment. In efforts to continue strengthening the Authority, major reforms are underway in its organisational infrastructure including investment in top tier supervisory technology, increase in human Resources and technical capacity in order to enhance the efficacy and governance of the sector but also to address current and future challenges particularly in the RegTech and FinTech space.