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Pursuant to the requirements of EU Directive 2009/111/EC (known as CRD II), EU Directive 2009/83/EC and EU Directive 2009/27/EC, the MFSA issued the following amended Banking Rules: 

• BR/02/2010 Large Exposures of Credit Institutions authorised under the Banking Act 1994,
• BR/03/2010 Own Funds of Credit Institutions authorised under the Banking Act 1994,
• BR/04/2010 Capital Requirements of Credit Institutions Authorised under the Banking Act 1994,
• BR/07/2010 Publication of Annual Report and Audited Financial Statements of Credit Institutions Authorised under the Banking Act 1994.
• BR/08/2010 Capital Adequacy of Credit Institutions Authorised Under the Banking Act 1994,
• BR/10/2010 Supervision on a Consolidated Basis of Credit Institutions Authorised Under the Banking Act 1994,
• BR/12/2010 The Supervisory Review Process Of Credit Institutions Authorised Under The Banking Act 1994

The amended Rules came into force with effect from 31 December 2010 with the reporting schedules submitted in line with the relevant new Appendices dated 31st March 2011. The Rules effective up to 30 December 2010 can still be found under Legislation & Regulation/Regulation/Banking/Credit Institutions under a separate heading.

Moreover, pursuant to the requirements of Directive 2010/76/EU (known as CRD III) a number of amendments relating to the strengthening of capital requirements and disclosure for the trading book and for re-securitisation instruments in the banking sector together with measures aimed at ensuring that remuneration policies in the banking sector do not generate unacceptable levels of risk were made to the consolidated version of the CRD. This means that the Authority is required to undertake further amendments to a number of Banking Rules. However it should be stressed that some measures were required to be transposed by 1st January 2011 (through changes to Banking Rules BR/04, BR/07 and BR/12 and the Banking Act 1994) while the bulk of the CRD III amendments shall be brought into force by 31 December 2011.

 The above Banking Rules BR/04, BR/07 and BR/12 include CRD III changes applicable from 1st January 2011.

• BR/02/2011   Large Exposures of Credit Institutions authorised under the Banking Act 1994     
• BR/03/2010   Own Funds of Credit Institutions Authorised under the Banking Act 1994     
• BR/04/2010   Capital Requirements of Credit Institutions Authorised under the Banking Act 1994     
• BR/07/2010   Publication of Annual Report and Audited Financial Statements of Credit Institutions Authorised under the Banking Act 1994     
• BR/08/2010   Capital Adequacy of Credit Institutions Authorized Under the Banking Act 1994    
• BR/10/2010   Supervision on a Consolidated Basis of Credit Institutions authorised under the Banking Act 1994
• BR/12/2010   The Supervisory Review Process Of Credit Institutions Authorised Under The Banking Act 1994    
  
  
  

BR/02/2011 Large Exposures of Credit Institutions authorised under the Banking Act 1994
Explanatory Note Large Exposures of Credit Institutions Appendix 1

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BR/03/2010 Own Funds of Credit Institutions Authorised under the Banking Act 1994

Explanatory Note Own Funds of Credit Institutions Appendix 1 Appendix 2

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BR/04/2010 Capital Requirements of Credit Institutions Authorised under the Banking Act 1994
Explanatory Note Banking Rule 4 and Appendix 1 Appendix 2 - Section I Credit Risk Standardised Approach Appendix 2 – Section II IRB Approach Appendix 2 – Section III CRM (Credit Risk Mitigation) Appendix 3 – Securitisation Appendix 4 – Operational Risk Appendix 5 - Returns Annex I – Definitions Annex II – Classification of Off-Balance Sheet items Annex III – Types of Derivatives Annex IV – Treatment of Interest and foreign exchange instruments Annex V – Transitional Provisions

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BR/07/2010 Publication of Annual Report and Audited Financial Statements of Credit Institutions Authorised under the Banking Act 1994.

Explanatory Note Publication of Annual Report and Audited Financial Statements of Credit Institutions Authorised under the Banking Act 1994.

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BR/08/2010 Capital Adequacy of Credit Institutions Authorized Under the Banking Act 1994

Explanatory Note Capital Adequacy of Credit Institutions Authorized Under the Banking Act 1994 Appendix A – Calculation of Capital Requirements Ratio Appendix B – Definitions Appendix C – The Trading Book and Hedging Exposures Appendix D – Instruments which qualify for inclusion in the Trading Book Appendix E – Calculation of Consolidated Capital Requirements Ratio Appendix F - Business Activities subject to Capital Requirements Appendix G – Capital Adequacy Rule Summary Schedule Annex I – Calculating Capital Requirements for Foreign Exchange Risk Appendix I – A – Calculating the Net Open Position Appendix I – B – Calculation of the Capital Requirement for Foreign Exchange Appendix I – C(c-i) – Return of Long Currency Positions Appendix I – C(c-ii & iii) – Return of Long Currency Positions (Codes) Appendix I – C(c-iv) Return of Short Currency Positions Appendix I – C(c-v & vi) Return of Short Currency Positions (Codes) Appendix I – D – Simple Method for Options (Carve-out) Appendix I – E – Total Capital Requirements for Foreign Exchange Risk (Return) Annex II – Calculating Capital Requirements for Settlement and Counterparty Risk Appendix II – A – Recognised Clearing Houses and Exchanges Annex III – Calculating Capital Requirements for Position Risk Appendix III – A – Interest Rate Specific Risk (Return) Appendix III – B – Interest Rate General Risk Method 1 – Maturity Bands, Risk Weights (Return) Appendix III – C - Interest Rate General Risk Method 2 – Duration Bands, Risk Weights (Return) Appendix III – D – The Carve-Out Method for Options Appendix III – E – Relevant Credit Rating Agencies and Investment Grade Ratings Appendix III – F – Equity Position Risk (Return) Appendix III – G - Position Risk Summary (Return) Annex IV – Underwriting Risk Annex V – Calculating Capital Requirements for Commodities Risk Appendix V – A – Maturity Ladder Approach for Commodities Risk (Example) Annex VI - Calculating Capital Requirements for Large Exposures Risk Appendix VI – A – Calculation of Incremental Trading Book Capital Requirement (Example) Annex VII – Use of Internal Models to calculate Capital Requirements

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BR/10/2010 Supervision on a Consolidated Basis of Credit Institutions authorised under the Banking Act 1994

Explanatory Note Supervision on a Consolidated Basis of Credit Institutions authorised under the Banking Act 1994

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BR/12/2010 The Supervisory Review Process Of Credit Institutions Authorised Under The Banking Act 1994

Explanatory Note The Supervisory Review Process Of Credit Institutions Authorised Under The Banking Act 1994 List of Appendices & Annexes Appendix 1 Internal Governance Appendix 2 ICAAP Annex 2A - ICAAP Report - Recommended Structure Annex 2B - Technical Criteria on Organisation & Treatment of Risks Annex 2C - List of Definitions Annex 2D - Principles on Stress Testing Annex 2E - Principles for Remuneration Policies Annex 2F - Principles for the Management of IRRBB Annex 2G - Principles for the Management of Concentration Risk Annex 2H - Principles on Risk Management Appendix 3 SREP Annex 3A - SREP-ICAAP interaction process Annex 3B - Technical Criteria on SREP Annex 3C - Prudential Measures Appendix 4 Obligations of the Authority as Consolidating Supervisor

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