Maltese MEP Alfred Sant has submitted an amendment  to the European Commission proposal, revising the Capital Requirements Directive which will avoid unnecessary administrative burdens and useless costs on the recently set up ‘Malta Development Bank’. The Malta Development Bank serves as a second-tier financial institution  when private commercial banks fail to make appropriate financing available, or when such is offered, normal market terms are not given.

Sant submitted the  amendment to the European Commission proposal with regards to exempted entities, financial holding companies, mixed financial holding companies, remuneration, supervisory measures and powers and capital conservation measures (Capital Requirements Directive).

The Commission presented its proposal amending the Capital Requirements Directive in December 2016, in order to make sure that the present regulatory framework is applied in a more proportionate way, and therefore, some of the current disclosure, reporting and complex trading book-related requirements do not represent a burden for some financial institutions, reducing their ability to finance the economy. The proposed Commission’s text of Article 2 (5) had exempted credit insitutions in Croatia and in the Netherlands from the CRDIV application. The Malta Development Bank was not included because it had not yet been set up.