Fabian Demicoli

Transparency and regulation in view of financial crises

 At the last Economic and Financial Affairs Council (of 8 July) it was concluded that there is a need for active measures on transparency for banks and other financial institutions and that credit rating agencies must be regulated.

These last years have witnessed how various deficiencies and lax practices in an economic system have caused credit problems across the world, leading to intervention from central banks to keep financial markets afloat. One of the financial sectors which came in for criticism was in fact that of agencies whose work is to determine which financial institutions are reliable and to what extent. It is clear that this system did not work and that the alarm on the crisis, which could have been avoided with greater caution, was not sounded in good time.

The Council is thus giving its support to a regime where credit rating agencies are subject to a European registration system and where international cooperation in this regard is increased.

On the other hand, the Council is encouraging banks and other financial institutions to increase transparency and to abide by a report prepared by the Committee of European Banking Supervisors. If the institutions, quickly and comprehensively, provide information on the difficulties that they are facing, it is more likely that trust in the markets is regained, as operators become more knowledgeable of the situation.

Source: Focus at MEUSAC

What we can do for you

INFORMATION POINT

BUSINESS SERVICES

MEMBERSHIP BENEFITS

LOCAL ISSUES & LEGISLATION

B2B NETWORKING EVENTS

LEGAL ADVICE

FUNDING ASSISTANCE

COURSES

BECOME A MEMBER

The Malta Chamber of SMEs represents over 7,000 members from over 90 different sectors which in their majority are either small or medium sized companies, and such issues like the one we're experiencing right now, it's important to be united. Malta Chamber of SMEs offers a number of different services tailored to its members' individual requirements' and necessities. These range from general services offered to all members to more individual & bespoke services catered for specific requirements.

A membership with Malta Chamber of SMEs will guarantee that you are constantly updated and informed with different opportunities which will directly benefit your business and help you grow. It also entails you to a number of services which in their majority are free of charge and offered exclusively to its members (in their majority all free of charge).