The required legislation to set up a central bank in Malta was passed in the Maltese Parliament on 11 November 1967 and five months later, on 17 April 1968, the Central Bank of Malta was established.
The bank became an integral part of the European System of Central Banks (ESCB) after Malta joined the European Union on 1st May 2004. The main mission of the bank is to ensure a sound financial system, thereby contributing to a healthy economic development. The main objectives of the bank are as follows:
- Promoting proper interest and exchange rate policies
- Maintaining the value of the external reserves of the country
- Safeguarding the integrity of the financial sector
- Promoting and supporting the development of financial markets
- Issuing notes and coins to meet the demand of the public
- Conducting economic analyses and publishing economic and financial statistics
- Advising the government on economic and financial matter
The administration of the bank is in the hands of a Board of Directors. A Governor heads the Board of Directors and is also its Chairman. Besides the Governor, the Deputy Governor and five other Directors constitute the board.
As the central bank of the country, the bank is responsible for undertaking the following activities: