As you are aware, the Comprehensive Assessment of major banks undertaken by the ECB marked the start of a trilateral relationship between banks, National Competent Authorities and the ECB in its role of supervisor of banks in the Euro area. The Single Supervisory Mechanism’s micro-prudential responsibilities will complement the existing ECB’s macro-prudential role in shaping the future of banking in the Euro area. Banking supervision, viewed as one of the tools at the disposal of the ECB, will help ensure financial stability which is needed to sustain macroeconomic growth. The demanding Asset Quality Review and stress tests coupled with an overall result that  BIS central bankers’ speeches  3  exceeded expectations set a positive mood in the market and should lead to easier access to bank funding for investment growth. Financial sector dimension of Malta’s competitiveness Turning to the Maltese context, it would be a pity if the low-cost credit conditions that are being offered by the ECB are not fully exploited in Malta. Broadly speaking, the overall participation in the TLTRO programme by core Maltese banks has been somewhat disappointing, with the participation of very few banks and with the actual take up being way short of the limits available. On the positive side, we have noted the introduction of a lending scheme that a domestic bank is funding from the ECB’s TLTROs. These TLTROs provide funds at very favourable terms – at a very low interest rate that is fixed for four years.
Some of the salient features of the Act, as can be read in the Consultative Paper prepared for this workshop are:   provisions to strengthen the legal basis, ownership and structure of Bank of Zambia as a modern central bank, as well as its primary objective;    provisions relating to adequate power and independence;    provisions relating to all aspects of the relationship between the Bank and Government structures;    institutional arrangements of the Bank including the appointment of governors, directors and auditors, internal budgets, reporting requirements, preservation of confidentiality and handling of possible offences;    adequate mechanisms for good governance and security of tenure for Governors;    measures to better manage and application of monetary policies, including the role of lender-of-last-resort, interest rate policies, exchange rate policies and Bank of Zambia’s involvement in money and foreign exchange markets;    creation of a Monetary Policy Committee; and    accountability to Government, Parliament and the Public. By tabling this draft Act before you the Stakeholders, the Bank of Zambia wants to maximise its consultative process by taking into account your views on this layman’s draft. We encourage constructive debate and assure you that your views will be taken into account before the draft is transmitted to our parent ministry, the Ministry of Finance and National Planning. The Ministry is responsible for initiating the legislative process that shall see this layman’s draft transformed into a Bill and tabled before Parliament for debate.