EN ECB -PUBLIC  
 
OPINION OF THE EUROPEAN CENTRAL BANK  
of 19 June 2015  
on a central credit r egister  
(CON/2015/20)  
 
Introduction and legal basis  
On 8 April 2015 , the European Central Bank (ECB) received a request from  the Central Bank of Malta 
(CBM)  for an opinion on a draft  bill amending the Central Bank of Malta Act (Cap. 204 of the Laws of 
Malta) and a  draft Central Bank of Malta Directive No 14 on a central credit r egister (hereinafter  the ‘draft 
bill’ and the ‘ draft directive’,  respectively  and together referred to as  the ‘draft law s’). 
The ECB’s competence to deliver an opinion is based on Articles 127(4) and 282(5) of the Treaty on the 
Functioning of the European Union and the thir d, fourth and sixth indents of Article  2(1) of Council 
Decision 98/415/EC1, as the draft laws relate to the CBM , the collection, compilation and distribution of 
financial and banking statistics, and the rules applicable to financial institutions insofar as they materially influence the stability of financial institutions and markets. In accordance with the first sentence of Article  17.5 of the Rules of Procedure of the European Central Bank, the Governing Council has adopted 
this opinion.  
 
1.  Purpose of the draft law s  
1.1 The draft bill  
1.1.1  The draft bill provides for the es tablishment and operation of a central credit r egister  (hereinafter 
the ‘Register’)  at the CBM . The Register will contain non-anonymised,  granular information on the 
actual and contingent exposures  of natural or legal persons, whether resident in Malta or not,  
arising from cre dit and other facilities granted to them  by credit institutions . The Register will be 
used to support ( a) the centralisation of information on credit exposures , (b) the analysis of the 
stability of the financial system , (c) the implementation of monetary policy , (d) the compilation of 
statistics  and ( e) the assessment of credit risk.  
1.1.2  The draft bill authorises the CBM to provide access to the information held in the Register to 
national central banks and other institutions of Member States having comparable databases , on 
the basis of reciprocity . It also empowers t he CBM to collect information from the  National Statistics 
Office , when necessary for the discharge of the CBM’s duties in relation to the Register . The draft 
bill ensures that b orrowers have the ri ght to obtain the information detailing their own exposures 
which is stored in the Register . 
                                                 
1  Council Decision 98/415/EC of 29 June 1998 on the consult ation of the European Central Bank by national 
authorities regarding draft legislative provisions ( OJ L 189, 3.7.1998, p. 42) . 
ECB -PUBLIC  
2 1.1.3  The draft bill authorises the CBM to issue directives  that impos e requirements on c redit and other 
institutions to provide information to the Register and  set out the conditions for granting access to 
the data held in the Register, including the imposition of fees.  
1.2 The draft directive  
1.2.1  The draft directive requires  credit i nstitutions to report to the CBM,  on a monthly basis , the end of 
month balances of exposures related to granting credit facilities. It also sets out rules regulating the 
right of access of credit institutions to the data held in the Register. These rules  clarify  that (a) the 
data to be  accessed will not include a reference to the credit instit ution granting the credit facility2, 
(b) the information accessed by credit institutions may not be transmitted to third parties and must 
only be used for the purpose of assessing credit risk3, (c) retention periods  will be established4 and 
(d) the writt en consent of the borrower  is requi red5 before a credit institution may access data 
relating to his credit exposures . The draft laws are also without prejudice to laws on data 
protection6 and each credit i nstitution must designate a maximum of three employees as 
authorised representatives for the purpose of accessing the Register7. 
1.2.2 The CBM will charge fees to credit institutions for accessing the Register  based on annual fees 
calculated on the basis of the cost incurred by the CBM in hosting the Register , alongside the credit 
institution’s share in credit exposure over the previous calendar year, and access fees in respect of 
specific requests. The precise amount  of fees has not yet been established.  
 
2. General observations  
2.1 The ECB welcomes the draf t law s. The R egister will enable the CBM  to create a national granular 
credit database of the type referred to in Decision  ECB/2014/68, in respect of which the CBM has a 
derogation until 30 June 2016 under Article 3(3) . By virtue of Decision ECB/2014/6 addressed to 
Eurosystem central banks , preparatory  measures are required to be taken by these central banks  
so that, within the given timeframe, the following is achieved:  (a) national granular credit databases 
operated by all of them , and (b) a common granul ar credit database shared between all of them 
and comprising granular credit data for all Member States whose currency is the euro. In addition, 
in the Maltese context9, the Register would  also contribute to the CBM’s function to ensure the 
stability of th e Maltese financial system10.  
2.2 From the perspective of credit institutions, t he Register will  enable more informed assessment s of 
credit risk, both in terms of  the initial decision to grant a credit facilit y and in terms of  ongoing 
                                                 
2  Article 8 of the draft d irective.  
3  Article 8 of the draft d irective.  
4  Article 7 of the draft d irective.  
5  Article 9 of the draft di rective and Annex II thereof.  
6  Article 3 of the draft d irective.   
7  Article 10 of the draft d irective.  
8   Decision of the European Central Bank  ECB/2014/6 of 24 February 2014 on the organisation of preparatory 
measures for the collection of granular credit data by the European System of Central Banks ( OJ L 104, 8.4.2014, 
p. 72). 
9  Depending on the circumstances, this may also be the case for other e uro area Member States and central banks.  
10  Article 5(1)(c) of the Central Bank of Malta Act (Cap. 204 of the Laws of Malta).  
ECB -PUBLIC  
3 assessment s of existi ng exposures . The Register  therefore enhances  credit institutions’ risk 
management capabilities.  
2.3 The ECB is currently developing a long- term legal fr amework for the collection of granular credit 
and risk data by the ECB  and the European System of Centr al Banks . This framework will define 
harmonised reporting requirements for credit data in all reporting Member States. The finalisation 
of this  long-term legal framework may impact the draft law s, for example by requiring additional 
data attributes to be collected and/or  a different feedback loop to reporting agents.  This means that  
the draft laws may need to be amended in the near future.  
 
3. Exchange of information  
3.1 The draft bill provides that the CBM may provide information held i n the R egister to national central 
banks and other institutions of Member States that  have comparable databases , on the basis of 
reciprocal arrangements . In this respect , the ECB notes that  the scope of the data collected by 
different credit registers will continue to vary  across Member States  until further harmonisation is 
achieved, with the result that t he exchange of information under this provision may not be possible 
in certain cases. Moreover, as the ECB does not currently have a comparable register, it cannot be 
provided with  information in the Register on the basis of this particular provision.  
3.2 The ECB notes that the information in the Register constitutes  a useful tool for the micro -prudential 
supervision of c redit institutions. From a financial stability and macr o-prudential perspective, the 
information in the Register would allow t he monitor ing and assess ment  of the build- up and appetite 
for credit risk in the banking system  generally , thereby help ing to calibrate the use of macro-
prudential instruments. The draft law does not contain an explicit provision allowing  the information 
on the Register to be accessed by  the ECB  or by  the Malta Financial Services Authority  (MFSA) , 
the national supervisor of credit institutions . However, under  Article 37(1) of the Central  Bank of 
Malta Act, the CBM is required to pass  on to the MFSA any information in its possession or to 
which it has access when so requested by the MFSA in the exercise of its duties under law11. The 
ECB also understands that , subject to data protection requirements,  the ECB may, in the exercise 
of its supervisory duties relative to credit institutions,  require the MFSA to request and pass on 
information contained in the Register12. This point is also relevant in the context of the macro-
prudential tasks conf erred on the ECB in Council Regulation (EU) No 1024/201313, which requires 
the ECB to take into account the specific situation of the financial system, economic situation and 
the economic cycle in the individual Member States or parts thereof.  
                                                 
11  A similar provision is also found in Article 18(1) of the Malta Financial Services Authority Act (Cap.  330 of the Laws 
of Malta) . 
12 This understanding is based on Article 6(2) of Council Regulation (EU) No 1024/2013 of 1 5 October 2013 conferring 
specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit 
institutions (OJ L 287, 29.10.2013, p. 63) and Article 21 of Regulation (EU) No 468/2014 of 16 April 2014 of the 
European Central Bank establishing the framework for cooperation within the Single Supervisory Mechanism 
between the European Central Bank and national competent authorities and with national designated authorities 
(SSM Framework Regulation) (ECB/2014/17) (OJ L 141, 14.05.2014, p. 1).  
13  Article 5 of Council Regulation (EU) No 1024/2013 of 15 October 2013 conferring specific tasks on the European 
Central Bank concerning policies relating to the prudential supervision of credit institutions (OJ L 287, 29.10.2013, p. 63). 
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4 3.3 Regarding the access of the ECB to the information contained in the Register for statistic al and 
monetary policy (as distinct from supervisory ) purposes,  the ECB notes that it may be entitled to 
access certain information contained in the Register under Article 41 of the Central Bank of Malta 
Act, which provides that the CBM  may disclose information to ‘international or other bodies ’ when 
this is required pursuant to  international obligations. Subject to data protection considerations , the 
ECB understands  that this provision would limit the ECB ’s access to the Register  to where the 
CBM is required to disclose information to the ECB . Consideration should therefore be given to 
amending the draft laws or the Central Bank of Malta Act to ensure a clearer legal basis for the 
ECB’s access rights to the information contained in the Register , as has been done in other 
Member States14.  
 
4. Specific additional observations  
4.1 The scope of the draft directive is restricted to credit institutions, whereas the draft bill allows t he 
CBM to impose reporting requirements on ‘ credit and other institutions ’. The CBM may wish to 
consider extending reporting obligations to financial institutions that  are not credit institutions.  
4.2 The ECB notes that some definitions of the data attrib utes to be reported under the draft directive, 
particularly credit data variables and credit data measures15, could be defined in a more specific 
manner in order to ensure more consistent reporting by credit institutions. In particular, the data 
attribute  ‘specific credit risk adjustment ’ is defined very widely.  
 
This opinion will be published on the EC B’s website.  
 
 
Done at Frankfurt am Main, 19 June 2015.  
 
[signed]  
 
The President of the ECB  
Mario DRAGHI  
                                                 
14  See, e.g., Opinion CON/2013/93, paragraph 2.1 and Opinion CON/2014/57, paragraph 2.2.  
15  Annex 1 of the draft directive.