The Governor explained how financial stability is dependent upon the stringent regulatory and supervisory regime of institutions within the financial sector and stressed the necessity for transparency of both domestic and international transactions. Malta follows the code of conduct laid down by the Basle Committee on Banking Supervision, and the IMF’s General Data Dissemination Standard with regard to the sharing of economic and financial information.

Mr Bonello elaborated on the new IMF programme in which the the Central Bank of Malta, the Malta Financial Services Centre and the Malta Stock Exchange will be participating. He asserted that new practices will enable Malta to more closely follow international standards and will identify the strengths, vulnerabilities and risks to IMF member States’ financial systems. Mr Bonello added that the key to becoming an internationally acknowledged financial centre lies within an efficiently regulated jurisdiction.

Malta's Central Bank aims to strengthen the co-ordination of its operations by developing a unit with the remit to perform banking supervision; it will also research methods that will support a sound financial system. Thus banking supervision will no longer be the responsibility of the Central Bank itself. Mr Bonello said that although changes are rapidly taking place within the finance sector, regulatory structures must be adapted in order to accommodate them.

In conclusion, Mr Bonello said that if a transfer of banking supervision responsibilities is implemented it should be well underpinned by the financial sector. The Central Bank, Malta's Financial Services Centre, the Malta Stock Exchange and the Ministry of Finance should all be in agreement in their co-operation and support. Above all, in the process of transferring responsibilities, the regulatory and supervisory structures must not be weakened in order to avoid tarnishing Malta's current good reputation with international monetary organisations.