Malta:
MFSA Issues Guidance On The Charging Of Negative Interest
06 November 2018
Mamo TCV Advocates
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The MFSA has issued a circular addressed to credit institutions
licensed in terms of the Banking Act, 1994, whereby, following
consultation with the Central Bank of Malta, it expressly prohibits
the imposition of negative interest rates on Euro denominated
deposits. This stops any emerging practice that may have been
recently witnessed in the local banking sector.
Credit institutions who have already entered into agreements
entailing such negative interest rates, need to rectify their
position within a 3-month transition period. Subject to certain
conditions, a maintenance fee may be charged in case of excessively
high balances.
Click here to access The Circular.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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