Update to the Circular addressed to Credit Institutions on the imposition of negative interest rates
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News Update: Update to the Circular addressed to Credit Institutions on the imposition of negative interest rates on euro denominated deposits
On the 3 January 2019, the MFSA issued an update to a circular dated the 18 September 2018 on the Imposition of Negative Interest Rates on Euro denominated Deposits.
While reaffirming the contents of the original circular, the MFSA, following consultation with the Central Bank of Malta, reconsidered the definition of "excessively high liquid balances". The deposit threshold, which was previously set at EUR 2.0 million (or the equivalent amount in any other currency), has now been reduced to EUR 1.5 million (or the equivalent amount in any other currency).
The circular may be accessed : here