S.L. 371.16 Art. 5Supervisory examination programme.

(1) The competent authority shall, at least annually, adopt a supervisory examination programme for the credit institutions it supervises. Such programme shall take into account the supervisory review and evaluation process referred to in regulation 3, and shall contain the following:

(a) an indication of how the competent authority intends to carry out its tasks and allocate its resources;

(b) an identification of which credit institutions are intended to be subject to enhanced supervision and the measures taken for such supervision as set out in sub-regulation 3; and

(c) a plan for inspections at the premises used by a credit institution, including its branches and subsidiaries established in other Member States in accordance with regulation 12 of the European Passport Rights for Credit Institutions Regulations and regulation 10(2) and (3) and regulation 19(1) and (2) of the Supervisory Consolidation Regulations.

(2) Supervisory examination programmes shall include the following credit institutions:

(a) credit institutions for which the results of the stress tests referred to in regulation 4(1)(a) and (1)(g) and in regulation 6, or the outcome of the supervisory review and evaluation process under regulation 3, indicate significant risks to their ongoing financial soundness or indicate breaches of the Act and any regulations or Banking Rules issued thereunder transposing the requirements of the CRD, of any binding legal instruments issued under the CRD and of the CRR; and

(b) deleted by Legal Notice 493 of 2021.

(c) any other credit institution for which the competent authority deems it to be necessary.

(3) Where appropriate under regulation 3, the following measures shall, in particular, be taken if necessary:

(a) an increase in the number or frequency of on-site inspections of the credit institution;

(b) a permanent presence of the competent authority at the credit institution;

(c) additional or more frequent reporting by the credit institution;

(d) additional or more frequent review of the operational, strategic or business plans of the credit institution; and

(e) thematic examinations monitoring specific risks that are likely to materialise.

(4) Adoption of a supervisory examination programme by the European regulatory authority of a home Member State shall not prevent the competent authority from carrying out, on a case-by-case basis, on-the-spot checks and inspections of the activities carried out by branches established in Malta of credit institutions authorised by such European regulatory authorities in accordance with regulation 8(2) and (3) of the European Passport Rights for Credit Institutions Regulations.