B A N K I I N G A N D F I I N A N C E I I N
S M A L L S T A T E S : :
I I S S U E S A N D P O L I I C I I E S
15–23 June 2009
Organised by the
Sponsored by the
and the

Dates, Venue and Organisation
The workshop will take place in Malta between 15 th and 23 rd
June 2009. It is being organised by the Islands and Small States Institute of the University of Malta. The Workshop is sponsored by the Commonwealth Fund for Technical Cooperation (CFTC) of the
Commonwealth Secretariat and the Malta Cooperation Programme of the Ministry of Foreign
Affairs.
The programme, spread over two weeks, will consist mainly of presentations by resource persons on different aspects of the main theme, and country presentations by the participants. These will all be followed by discussion. The Programme will also include field visits to financial institutions such as the Malta Financial Services Authority, the Malta Stock
Exchange, the Central Bank of Malta, and other banks. There will also be a social programme including welcome drinks on the first day of the workshop, coffee breaks, a walking tour around Valletta, an excursion with guide, and a dinner at the end of the programme.
Workshop Objectives
The aim of the workshop is to disseminate knowledge and provide training on banking and finance, covering a variety of themes with a focus on small states. Another objective of the workshop is to enable the participants to benefit from the sharing of ideas and experiences during discussions.
Target Participants
The workshop is primarily intended for officials, at senior and middle management levels, operating in banking and financial institutions and those in the public sector. Participants should normally be nominated by the national governments and sponsored by the
Commonwealth Fund for Technical Cooperation. A limited number of self-funded participants can also participate.
Country Presentations and Personal Action Plans
Participants will be expected to present a brief paper about his/her respective country, describing the banking and financial sectors. Two days will be assigned for these presentations, with each country being allocated about 30 minutes. These presentations will serve as case studies of the constraints and opportunities in the respective countries. In addition the presentations should include a section on the implications of these for future policies, together with an outline plan of suggested actions that could be taken in the respective country to improve the financial services.
Language of Instruction
The course will be conducted in English, and all participants are expected to have a good working knowledge of the English language.
Certificates
Certificates of attendance will be awarded to those participants who complete the entire programme. The certificates will be issued by the Islands and Small States Institute of the
University of Malta, the Commonwealth Fund for Technical Cooperation and the Malta
Ministry of Foreign Affairs.
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Candidates Accepted for Sponsorship
Candidates who are accepted for sponsorship under the terms of the Malta-
Commonwealth Third Country Training Programme and the Commonwealth Fund for Technical Cooperation (CFTC) will have their course fees and hotel accommodation on half board basis paid for them. In addition they will receive a subsistence allowance of €150 for the duration of the programme. The selected participants themselves, or their employer or the nominating Government, will be responsible for air travel to and from Malta. The award covers accommodation for 13 nights, from the 14 th
to 23 rd
June 2009. Extended stays beyond these dates must be met by the participants. Participants are urged to supplement this amount with additional spending money to cover incidental expenses such as telephone calls, fax messages, drinks at the hotel bar and other such expenses.
Applications and Nominations
In order to qualify for sponsorship, applicants must be nominated through the
Governance and Institutional Division’s Point of Contact (POC) in their country.
Nominated applicants must complete the appropriate nomination forms (GID/1) available from the Point of Contact in their own country. Completed forms must be received by the Director, Governance and Institutional Development Division of the
Commonwealth Secretariat, copied to the Director of the Islands and Small States
Institute, by not later than 22 May 2009.
All application forms should be duly endorsed by the respective POC and should be forwarded to:
The Director, Governance and Institutional Development Division
Attn: Ms Pauline Campbell
Programme Officer, Governance and Institutional Development Division
Commonwealth Secretariat, Marlborough House, Pall Mall, London SW1Y 5HX, UK
Tel: (44) 207-747-6321/6588; Fax: (44) 207-747-6515/6335. email: p.campbell@commonwealth.int
Copies of the application and nomination forms should also be sent to:
The Director, Islands and Small States Institute
Attn: Ms Maryrose Vella
Islands and Small States Institute, Guze Cassar Pullicino Bldg,
University of Malta, Msida, Malta
Tel/Fax: (356) 21344879; (356) 7905 8969. email: maryrose.vella@um.edu.mt
Self-funded Applicants
Persons who do not qualify for sponsorship under the Malta-Commonwealth Third
Country Training Progamme may still apply to join the course and will be charged a fee of €500 (approx. US$660) to cover tuition fees, course documentation, lunches and the social programme. Interested persons are to contact Ms Maryrose Vella at the above address requesting a special application form.
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Sunday 14 June Arrival of Participants and Registration
Monday 15 June
0900-0945: Opening session and welcome speeches
Professor Lino Briguglio, Director, Islands and Small States Institute,
Dr Gordon Cordina, Head, Economics Department, University of Malta
Representative from the Commonwealth Secretariat,
Mr Joe Cole, Ministry of Foreign Affairs, Malta,
Professor Juanito Camilleri, Rector, University of Malta.
0945-1000: Short break
1000-1100: Monetary Economics in Small States
1100-1115: Coffee Break
1115-1215: Exchange Rate Policies in Small States
1215-1400: Lunch
Gordon Cordina
Stephanie Vella
Lino Briguglio 1400-1500: Vulnerability and Resilience of Small States
1500-1515: Coffee break
1515-1615: The Financial Sector: Inter-linkages and Risks
1800: Welcome Drinks
Tuesday 16 June
Alexia Pisani
0900-1000: Visit to the Bank of Valletta
1000-1215: Visit to the Malta Stock Exchange
1215-1400: Lunch
1400-1500: Walking Tour around Valletta
1500-1645: Visit to the Central Bank of Malta
Wednesday 17 June
Robert Vella Baldacchino
0900-1000: Housing Market Developments: Financial
Issues for Small States
1000-1100: The Microstructure in the Securities Market
1100-1115: Coffee Break
1115-1215: The Role of the Financial Regulator
1215-1400: Lunch
1430-1645: Visit to HSBC Head Offices
Thursday 18 June
Wendy Zammit
Silvio Camilleri
Paul Vella
0900-1000: Financial Stability Vulnerability Index
1000-1100: Development in the Local
Banking System 2002 - 2008
1100-1115: Coffee Break
Miguel Borg
Karol Gabaretta
1115-1215: Monetary Policy Decisions: Financial
Stability Implications Maruska Buttigieg
1215-1400: Lunch
1400-1500: Insurance Markets and its Regulation and
Supervision in Small States
1500-1515: Coffee Break
David G Curmi
1515-1615: Implementation of a Deposit Protection
Scheme in Small States
1615-1700: Crises Management Framework
Friday 19 June
Anton Felice
Anthony Cortis
0900-1000: Risk Management for Bankers:
Credit and Liquidity Risks
1000-1100: Risk Management for Bankers:
VaR and Stress Testing
1100-1115: Coffee Break
1115-1215: The Internal and External Audit Function
1215-1400: Lunch
1400-1645: Visit to the Malta Financial Services Authority, Attard
Miguel Borg
Miguel Borg
Peter Baldacchino
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(CONTINUED)
Saturday 20 June EXCURSION
1400 – 1700: Excursion with guide
Sunday 21 June FREE DAY
0900 – 1800: Visit to the Island of Gozo (Optional)
Monday 22 June
0900-1000: Country Presentations
1100-1115: Coffee Break
1115-1215: Country Presentations
1215-1400: Lunch
1400-1645: Country Presentations
Tuesday 23 June CONCLUDING SESSIONS
0900-1000: Malta: The Financial Stability Experience of a
Small State
1000-1100: Banking Sector in Small States: The Challenges
1100-1115: Coffee Break
1115-1230: Panel Discussion: International Financial Stability
1230-1400: Lunch Break
1400-1530: Presentation, Discussion and Adoption of Final Report
1530-1630: Concluding remarks and Presentation of Certificates
Herbert Zammit Laferla
John Consiglio
Prof. L. Briguglio
Gordon Cordina
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Travel
Airfares and travel expenses to and from Malta are to be borne by the participants, their employer or the nominating Government. Participants should ensure that they have adequate insurance cover during their stay in Malta as they will be fully responsible for all medical costs, and for the costs arising from any loss or theft of personal belongings.
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Visas
Since Malta forms part of the Schengen Agreement, applicants require a visa to enter Malta. They are expected to apply for a Schengen visa through the respective foreign offices in their country. The process of issue takes quite some time and applicants are advised to make the necessary arrangements in good time for the visa to be issued before they leave their country. Prospective participants who intend to stop over in a third country on their way to Malta are also advised to obtain the required transit visas before leaving their country. Participants are expected to arrive in Malta on 14 June 2009.
Arrival/Departure Transfers
Participants are to inform the Course Secretariat of their arrival and departure time and dates, confirming also their visa status. The Secretariat will organise transfers from the Malta International Airport to the Hotel.
Insurance
Participants are advised that before coming to Malta, they should secure overseas travel, accident and health insurance cover for the duration of their stay in Malta.
Hotel Accommodation
Participants will be accommodated in a hotel on half-board basis. Transport will be organised for the participants to take them for field trips. Participants are urged to bring additional funds to cover expenses such as telephone and other sundry costs not covered by the award. These costs are the responsibility of the participants, their employers or the nominating Government. No additional payments will be made by the CFTC, ISSI, or the Government of Malta. Participants and/or their respective
Ministries will be responsible for the cost of accommodation and living expenses beyond the duration of 13 nights.
Programme Changes
The Islands and Small States Institute reserves the right to effect changes to the programme and to cancel the programme altogether should there be insufficient number of registrations.
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THE GOVERNANCE AND INSTITUTIONAL DEVELOPMENT DIVISION (GIDD)
The role of the GIDD at the Commonwealth Secretariat is to help governments and the private sector strengthen their structures of governance and administration. Its activities are informed by the values of democracy, good governance, human rights, gender equality and a more equitable sharing of the benefits of globalisation. Often in collaboration with other Commonwealth Secretariat divisions, the GIDD provides advisory services, experts and training. It also runs the Commonwealth Service Abroad Programme (CSAP), which deploys skilled volunteers to promote people-centred programmes. The GIDD provides a range of technical assistance to help governments reform their public services. Each programme is tailored to the needs of the country or region. It also supports institutions of governance and facilitates democratic oversight. It helps develop and strengthen parliamentary committee systems and Ombudsman offices, as well as bodies to promote human rights and to combat corruption and money-laundering. The GIDD provides project managers, engineers, scientists and technicians in environmental management and physical infrastructure. Empowering women and vulnerable people is a key part of GIDD’s work. With other divisions of the Commonwealth Secretariat, GIDD promotes women’s participation in governance and ensures that they benefit from development.
MINISTRY OF FOREIGN AFFAIRS, MALTA
The Malta Co-operation Programme at the Ministry of Foreign Affairs provides the means for Maltese professionals to share their experience and skills with participants from developing countries and small states with limited human resources. Having attained, over the years, a high degree of competence in human resources development, and fully supportive of the Commonwealth's efforts in the field of development training, Malta has embarked on the Third Country Training Programme. Under this scheme, specialised training has been delivered in the fields of information technology, education planning in small states, port management and insurance management. The Malta-Commonwealth Third Country Training Programme marks the transition from technical assistance to mutual co-operation between Malta and its Commonwealth partners. This programme of cooperation is jointly funded and administered by the Ministry of Foreign Affairs and the Commonwealth
Secretariat, and was formally established in 1995 as a programme to train senior to middle level personnel from developing countries of the Commonwealth.
THE ISLANDS AND SMALL STATES INSTITUTE
The Islands and Small States Institute is based at the University of Malta. The Institute which was previously based at the Old University Building in Valletta, was established in 1989 with the aim of promoting research and training on economic, social, cultural, ecological and geographical aspects of islands and small states. The
Institute organises international conferences, training workshops and seminars on themes related to its overall aims. It runs programmes leading to the MA, MPhil and PhD degrees in island and small states studies. It also operates a network of communication between institutions and individuals engaged in research and training related to the aims of the Institute and undertakes consultancy assignments for international organisations. The
Institute publishes Occasional Papers on Islands and Small States (ISSN 1024-6282). The Institute also collaborates in the publishing of books with major publishers notably Cassell/Pinter of London (Islands Series). An important contribution made by the Institute was the construction of the economic vulnerability index.
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GEOGRAPHY
The Maltese islands lie in the middle of the Mediterranean Sea about 100 km south of Sicily and 300 km off North Africa. Their total area is about 320 square km. The largest island is Malta with a total area of 246 square km, while the second largest, Gozo has an area of 67 square km. The total population of Malta is about 370,000, of which about 10% live on the Island of Gozo.
CLIMATE
The climate of the Maltese Islands is typically Mediterranean, with hot dry summers, and warm and showery autumns and short cool winters. In June the average temperature would be in the region of
24° C during the day and 19° C during the night.
CURRENCY
Malta's currency is now the euro (€) which is divided into 100 cents. At the time of printing of this brochure, the exchange rate is approximately US $1.4 to the euro.
LANGUAGE
The official languages are Maltese and English. Almost all Maltese speak English while Italian is also widely spoken.
CUSTOMS
Personal belongings and clothing intended for own use are not liable to duty. The duty free allowance for adults is 200 cigarettes, one bottle of spirits and one bottle of wine, and a reasonable quantity of perfume.
BANKS
Banks are usually open from 08:30 hrs. to 13:30 hrs., Monday to Friday, and up to 11:30 hrs. on
Saturdays, with extended times in the afternoon between Mondays and Fridays. Foreign exchange facilities are available at Malta International Airport and at a number of automated teller machines situated in the major commercial and touristic areas, all on a 24-hour basis. They are also available at most banks and foreign exchange bureaus.
SHOPPING
Opening hours for shops in Malta are between 09:00 hrs and 19:00 hrs, with a lunch break between
13:00 hrs. and 16:00 hrs. Opening hours are however extended to as late as 22:00 hrs in commercial and touristic areas. Shops do not open on Sundays and public holidays. Major credit cards and travellers' cheques are accepted at most shops and restaurants.
RESTAURANTS
Ther e are a variety of restaurants located in Sliema, St Julians, Valletta, St Paul's Bay and other tourist areas, ranging from fast food shops to more expensive eating places. Food in Malta is often influenced by Italian cuisine, but there are many restaurants serving oriental food. Some restaurants offer a typically Maltese cuisine, which is often fish based.
TRANSPORT
Malta's public transport system is very cheap and provides an extensive network throughout Malta.
Car hire is also considered cheap, however the cost normally depends on the duration of the hire.
Taxis can be identified by their all-white livery. In order to check on the cost of a taxi ride, it is advisable to negotiate with the driver beforehand. Persons taking a taxi upon arrival at the Malta
International Airport are to pay for the service at the taxi booth situated at the arrivals lounge.
MEDICAL CARE
Malta enjoys a high standard of medical care, and there are several public and private hospitals and clinics on the islands.
ELECTRICITY
Supply is 240 volts, single phase 50 cycles. The square-fitting standard 3-pin British plugs and sockets are used.
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