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This statement summarises the feedback the MFSA received on the Consultation Document and sets out the MFSA's response and position thereto

The Malta Financial Services Authority has issued new guidance to credit institutions outlining supervisory expectations for dividend distributions, emphasizing prudent capital planning and financial resilience. While not introducing new regulatory requirements, the circular formalizes current supervisory practices and provides detailed documentation requirements for banks proposing distributions at both institutional and holding company levels.