Regulatory Alerts2021-11-12
Added · Updated
Credit Risk Management in Malta’s Banks
The MFSA requires banks in Malta to improve credit risk management by enhancing data quality, implementing objective Early Warning Indicators and Unlikely-to-Pay triggers, and correctly recording forbearance measures. Specific obligations include performing affordability assessments for forbearance, adhering to strict exit criteria for non-performing exposures, and maintaining robust IT systems and credit files. Banks must document these assessments and integrate the findings into their Internal Capital Adequacy Assessment Processes, with supervisory reviews scheduled for 2022.