Banks & Credit Institutions: Compliance and Supervision

Post licensing and upon commencement of activities, supervision is carried out continuously by the MFSA by carrying out periodical reviews of the operations and administration of the licence holders. This inspection is generally carried out on-site and focusses on analysing the risk profile of the bank in view of its principal areas of operations. As a result of this gap analysis, the Authority provides recommendations and comments to enhance protection against the said risks.

The MFSA also carries out supervision by requiring the Bank to submit monthly and quarterly reports. The latter are more detailed and include a breakdown of various aspects of the activities including profits and loss, assets, own funds, capital adequacy, own funds and potential large exposures.