In Malta, it is important that we maintain our reputation, and the credibility that goes with it, as a sound and well-regulated financial services centre. To this end, the institutional links between the Bank, the MFSA and the Ministry of Finance could be strengthened further in the light of the experience provided by the global financial crisis. Malta, moreover, is one of two euro area member states where the central bank is least involved in the conduct of banking supervision. Although the means already exist for exchanging views and information, it could prove mutually beneficial for the Bank and the supervisory authority to seek to deepen the level of existing cooperation. As for our capacity to manage any eventual financial crisis, the Domestic Standing Group was set up in 2007, chaired by the Deputy Governor and comprising senior representatives from the Bank, the MFSA and the Ministry. As in other EU countries, a crisis simulation exercise was held soon after to test communications between the parties, co-ordinate decision making and manage potential conflicts of interest. Useful lessons have been learnt. Another important problem area highlighted by the crisis, and which is also relevant for Malta, relates to cross-border issues. Foremost among these is the co-operation between the home and host regulators. In this regard, the spirit underlying the Memorandum of Understanding on co-operation to safeguard cross-border financial stability signed last June by EU central banks, regulators and ministries of finance, now needs to be translated into clear modalities for effective cooperation.

Jean Claude Trichet: Hearing at the Economic and Monetary Affairs Committee of the European Parliament Introductory speech by Mr Jean Claude Trichet, President of the European Central Bank, at a hearing before the Economic and Monetary Affairs Committee of the European Parliament, Brussels, 7 December 2009. *  *  *  Dear Madam Chair, Dear Members of the Committee on Economic and Monetary Affairs, This is our first meeting since the entry into force of the Lisbon Treaty. The new Treaty is a reason to celebrate: in Europe generally, here at the European Parliament, but also at the ECB. It will make the Union stronger, more effective and more efficient. The powers and responsibilities of the European Parliament increase. The ECB formally becomes an institution of the European Union, and all its essential features, above all its independence, are confirmed. Dans le cadre du nouveau traité, nous nous réjouissons de notre collaboration à venir avec le Parlement. La qualité de cette coopération a été exemplaire à mes yeux au cours de ces dernières années. Unsere heutige Anhörung ist drei wichtigen Themen gewidmet: erstens, unserer Einschätzung der aktuellen wirtschaftlichen Lage; zweitens, unserer Exit-Strategie zum Auslaufen der außergewöhnlichen geldpolitischen Maßnahmen, die wir in dem Höhepunkt der Krise eingeführt hatten; und drittens, dem Thema der systemischen Risiken im Finanzsystem. 1. Economic and monetary developments  The economic situation and outlook have continued to improve since my previous hearing before this Committee ten weeks ago. The euro area economy shows increasing signs of recovery.