Cap. 204 Art. 17BJoint Financial Stability Board.

(1) There shall be a Joint Financial Stability Board which is a body established for the purpose of ensuring effective cooperation between the Bank and the competent authority in the area of financial stability and which shall have the functions set out in this Act.

(2) The Joint Financial Stability Board shall be composed of the Governor of the Bank, who shall be the Chairman, and in his absence the Deputy Governor of the Bank responsible for financial stability who shall preside, two other representatives of the Bank and two representatives of the competent authority.

(3) The Minister may appoint a representative to participate as a non-voting observer at meetings of the Joint Financial Stability Board. The Chairman may co-opt other non-voting observers.

(4) Without prejudice to the Treaties, the Statute and any legal acts issued thereunder, the Joint Financial Stability Board shall have the function to facilitate cooperation between the relevant authorities in matters impacting on financial stability, including macro-prudential policy and, where relevant, micro-prudential instruments. In addition, it shall have the following functions:

(a) to formulate policy recommendations designed to safeguard the stability of the financial system and which may be communicated to the relevant public authority or public institution;

(b) to identify and assess macro-prudential instruments and, where relevant, micro-prudential instruments required to be implemented to mitigate or control potential systemic and other risks to the financial system;

(c) to give advice about whether and how an authority or public institution should act in respect of a credit or financial institution, where the issue appears to the Joint Financial Stability Board to be relevant to the stability of the financial system; and any such recommendation, advice or assessment made by the Joint Financial Stability Board shall be taken into consideration by a public authority or public institution in Malta in the execution of its functions. It shall be the duty of such public authority or public institution to seek the opinion of the Joint Financial Stability Board prior to exercising any functions in matters which may impact on financial stability.

(5) The Joint Financial Stability Board shall meet as often as may be necessary or expedient but in any case not less frequently than once every three months. The meetings shall be convened by the Chairman either on his own initiative or on the written request of any three members.

(6) The Joint Financial Stability Board may act notwithstanding any vacancy amongst its members provided there is a quorum consisting of not less than three members present at the meeting including one member from the competent authority.

(7) Subject to the provisions of this article, the Joint Financial Stability Board shall regulate its own procedure.