EN ECB -PUBLIC 
 
 
OPINION OF THE EUROPEAN CENTRAL BANK  
of 30 April  2013  
on macro -prudential policy  
(CON/ 2013/30) 
 
Introduction and legal basis  
On 26 March 2013, the European Central Bank (ECB) received a request fr om the Governor of the 
Central Bank of Malta (CBM ) for an op inion on the draft Central Bank of Malta Directive No 11 on 
macro-prudential policy (hereinafter the ‘ draft d irective ’). 
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 third indent of Article 2(1) of Council Decision 98/415/EC of  
29 June 1998 on the consultation of the ECB by national authorities regarding draft legislative provisions
1, as the dr aft directive relates to  the CBM . In accordance with the first sen tence of Article 17.5 
of the Rules of Procedure of the ECB, the Governing Council has adopted this opinion. 
 
1.  Purpose of the draft CBM Directive  
1.1 The Central Bank of Malta Act2, by virtue of article  5(1) and (3), empowers the CBM to issue 
directives as may be required to implement  the provisions of the Central Bank of Malta Act . The 
draft directive implements  Recommendation ESRB/2011/3 of the European Systemic Risk Board 
of 22 December 2011 on the macro -prudential mandate of national authorities3. Mor e specifically, 
the draft directive implements  Recommendation A1 on the ultimate objective of macro -prudential 
policy and Recommendation C4 on macro- prudential instruments.  
1.2 The draft d irective will constitute a legally binding instrument . It is expected to be published by  the 
end of June 2013 and to  enter into force shortly there after. 
 
2. Specific observations  
2.1 The ECB supports the effective design  of macro -prudential policy frameworks within the Member 
States, in line with the guiding principles expressed in Recommendation ESRB/2011/3. Moreover, 
the ECB considers that the ECB and national central banks  should play a leading role in macro -
                                                 
1  OJ L 189, 3.7.1998, p. 42.  
2  Chapter  204 of  the Laws of Malta.  
3  OJ C 41, 14.2.2012, p. 1.  
ECB -PUBLIC 
2 prudential oversight , given their expertise and existing responsibilities in the area of financial 
stability4. 
2.2 In the light of the above, the ECB welcomes the arrangement  under which t he CBM is the national 
authority responsible for the conduct of macro -prudential policies , acting in cooperation with other  
authorities whose actions have a material impact on finan cial stability, in particular, the Malta 
Financial Services Authority (MFSA) . The ECB understands that the relevant arrangements  in this 
respect  are implemented through a Memorandum  of Understanding5.  
2.3  At the same time, the ECB notes that performance by the CBM of macro -prudential tasks should 
not affect:  (a) the CBM’s institutional, functional and financial independence ; or (b) the 
performance by the E uropean System of C entral Banks of its tasks under the Treaty and the Statute 
of the European System of Central Banks and of the European Central Bank6. Moreover, the CBM 
in its capacity as a macro -prudential authority should be expressly mandate d to cooperate with the 
European Systemic Risk Board (ESRB)  and, where needed,  with the macro -prudential author ities 
of the other Member States, in particular with regard to the  exchange  of information7. The ECB 
understands that an express  stipulation to this effect is included in the Memorandum of 
Understanding8. 
2.4 The ECB welcomes that paragraph 6 (a) to (c) of the draft directive , grouping the macro -prudential 
instruments by reference to their intermediate objectives, is aligned with the direction of on -going 
analytical work by the ESRB . 
2.5 This opinion does not prejudice the conclusions of the follow -up assessment of the above 
mentioned recommendations which the ESRB will issue in accordance with Article 17 of 
Regulation (EU) No 1092/2010 of the European Parliament and of the Council of 
24 November  2010 on European Union macro- prudential oversight of the financ ial system and 
establishing a  European Systemic Risk Board9. 
 
This opinion will be published on the ECB’s website.  
 
Done at Frankfu rt am Main, 30 April  2013.  
[signed]  
 
The Vice -President of the ECB  
Vítor CONSTÂNCIO  
                                                 
4  See paragraph 5.1 of O pinion CON/2012/44 and paragraph  3.1 of O pinion CON/2012/55.  All ECB opinions are 
published on the ECB ’s website at www.ecb.europa.eu.  
5  Memorandum of Understanding of 25 January 2013 between the Central Bank of Malta and the Malta Finan cial Services 
Authority on the setting u p of a Joint Financial Stability Board  (hereinafter the ‘Memorandum of Understanding’) . 
6  See paragraph 4 of Opinion CON/2009/88  and paragraph 3.2 of Opinion CON/2012/55.  
7  See paragraph 5.3 of Opinion CON/2012/ 44 and paragraph 4.1 of Opinion CON/2012/55.  
8  See paragraphs 9 and 10 of the Memorandum of Understanding . 
9  OJ L 331, 15.12.2010, p. 1.