Reforms in the banking system need to be accompanied by structural reforms in other parts of the economy. However, this can only be possible if the economy is growing sustainably. Within the context of limited fiscal space, there is a need for the appropriate environment to encourage investment and stimulate growth in the private sector. Going forward, we need to enhance Malta’s competitive position in order to attract a higher volume of capital investment in the future. A strong education and skills base, an upgraded infrastructure and a clean and sustainable source of energy are essential elements that would pave the way for future investment. The financial sector provides an important contribution to output and employment growth in Malta. Going forward, the sector also has room for expansion in a range of activities that link it with the domestic economy in the sense that value is added in Malta by engaging the services of financial experts, lawyers, accountants and so on, but catering to demand abroad, such as in the Mediterranean region and beyond. For example, the recently announced initiative to create space for a new commercial activity in the form of facilities for Islamic banking is consistent with this vision for Malta. Enhancing our competiveness requires a constant search for new areas of activity as well as strengthening and refining the currently successful ones. It is the only way that we can ensure that the standard of living can keep increasing and that the value added of the Maltese economy can keep advancing. Thank you.
For the SNB, the focus is on measures that reinforce the long-term resilience of our financial system with a view to future financial market crises. BIS Review 101/2008  1