Malta-Commonwealth Third Country Training Programme
BANKING AND FINANCE
IN SMALL STATES:
ISSUES AND POLICIES
Valletta, Malta
17-28 April 2006
Organised by
The Islands and Small States Institute
at the Foundation for International Studies, Malta
in collaboration with the
Department of Banking and Finance of the University of Malta
Sponsored by the
Commonwealth Fund for Technical Co-operation
Commonwealth Secretariat, London
and the
Malta Co-operation Programme
Ministry of Foreign Affairs, Malta
WORKSHOP INFORMATION
Dates, Venue and Organisation
The workshop will take place in Malta, between 17th to 28th April 2006 at the Foundation for
International Studies, St Paul Street, Valletta. It is being organised by the Islands and Small
States Institute in collaboration with the Banking and Finance Department of the University of
Malta. The workshop is sponsored by the Commonwealth Fund for Technical Cooperation of
the Commonwealth Secretariat and the Malta Cooperative 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. In addition, field visits to relevant institutions in Malta
will be organised. There will also be a social programme including a welcome reception on
the first day of the workshop, an excursion to the Medieval city of Mdina with guide, a cultural
visit to Valletta, a day trip to the Island of Gozo and 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 the private sector and public sector institutions. 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
Each participant will be expected to present a brief paper about his/her respective country,
describing the banking and financial sectors. A number of sessions will be assigned for these
presentations. These presentations will serve as case studies of the characteristics and
structures as well as the constraints and opportunities in the respective countries, and should
include a section on the implications of these for future policies and strategies.
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
Foundation for International Studies at the University of Malta, together with the Commonwealth
Fund for Technical Cooperation (CFTC) and the Ministry of Foreign Affairs.
TERMS OF THE AWARD
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 bed and breakfast basis paid for them. In addition
they will receive a subsistence allowance of Lm200 for the duration of the programme. The selected
participants themselves, or their employer or the nominating Government, will be responsible for their
air fare to and from Malta. Telephone calls, fax messages, drinks at the hotel bar and other personal
expenses are to be borne by the participants themselves.
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 Lm250 to cover tuition,
course documentation, lunches and the social programme. Interested persons are to contact the
Islands and Small States Institute (see contact details below).
Applications and Nominations
In order to apply for the award, nominated applicants must complete the appropriate nomination
forms (GID/1 Form) and send them to the Director, Governance and Institutional Development Division
(GIDD) of the Commonwealth Secretariat copied to the Director of the Islands and Small States
Institute, not later than 31st March 2006. Acceptance of such nominations will be decided by an
Admissions Board composed of the Director of the Islands and Small States Institute, a representative
of the Ministry of Foreign Affairs, Malta and a representative of the University of Malta. The Board will
operate in consultation with the Commonwealth Fund for Technical Cooperation.
Applicants must be nominated through the Governance and Institutional Development Division's Point
of Contact (POC) in their own country. All application forms should be duly endorsed by the POC and
should be forwarded to:
The Director, Governance and Institutional Development Division
Attention: Mrs May Caplin
Programme Assistant, Governance and Institutional Development Division
Commonwealth Secretariat, Marlborough House, Pall Mall, London SW1Y 5HX, UNITED KINGDOM
Tel: (44) 207-747-6334; Fax: (44) 207-747-6315/6335.
email: m.caplin@commonwealth.int
Copies of the application and nomination forms should also be sent to:
The Director, Islands and Small States Institute, Foundation for International Studies,
University Building, St Paul Street, Valletta, VLT 07, Malta.
Tel/Fax: (356) 21248218; email: islands@um.edu.mt
PROGR
Sunday 16 April
Arrival of participants
Monday 17 April
0900-0945
0945-1000
Short break
Opening session and welcome speeches
Monday 17 April
1000-1100
1100-1115
1115-1215
1215-1400
1400-1500
1500-1515
1515-1615
1615-1700
1800-2000
2000
MONETARY POLICY AND FINANCIAL STABILITY IN SMALL STATES
Monetary Economics in Small States
Tuesday 18 April
FINANCIAL SECTOR DEVELOPMENT IN SMALL STATES
AND THE INTERNATIONAL ARENA
Smallness, Vulnerability and International Market Access
Financial Sector Integration within a Monetary Union
0900-1000
1000-1100
1100-1115
1115-1215
1215-1400
1430-1645
1700
Coffee Break
Interest Rate Policy in Small States
Lunch
Financial Stability Issues for Small Island States
Coffee Break
Exchange Rate Policies in Small States
Housekeeping notices and settlement of per diem
Welcome Drinks at the Foundation for International Studies
Return to Hotel
Coffee Break
Recent Developments in EU Financial Legislation
Lunch
Visit to the Central Bank of Malta, Valletta.
Return to Hotel
Wednesday 19 April FINANCIAL SECTOR DEVELOPMENT IN SMALL STATES
AND THE INTERNATIONAL ARENA (CONT)
0900-1000
Discerning Future Financial Crisis: The Law and Institutional Based Dimensions
1000-1100
The International Money Laundering Control Process
1100-1115
Coffee Break
1115-1215
The Impact of the New Basel Accord on Islands and Small States
1215-1400
Lunch
1430-1645
Visit to the Malta Financial Services Centre, Attard.
1700
Return to Hotel
Thursday 20 April
0900-1100
1100-1115
1115-1230
1230-1430
1430-1645
1700
COUNTRY PRESENTATIONS
Country Presentations by Participants
Friday 21 April
0900-1000
1000-1100
1100-1115
1115-1215
1215-1400
1400-1500
1500-1515
1515-1615
1615-1645
1700
FINANCIAL SECTOR REGULATION IN SMALL STATES
Banking Regulation and Monetary Policy
Deregulation of the Financial Market
Coffee Break
Three Country Presentations by Participants
Lunch
Country Presentations by Participants
Return to Hotel
Coffee Break
Experiences of Financial Liberalisation in Malta
Lunch
International Financial Crime
Coffee Break
Implementation of a Deposit Protection Scheme: The Case of Malta
Overview of week’s work
Return to Hotel
Saturday 22April
1400-1700
Excursion with guide
Sunday 23 April
1100-1300
FREE DAY
Day Trip to the Island of Gozo (optional)
RAMME
Monday 24 April
0900-1000
1000-1200
1215-1400
1400-1500
1500-1515
1515-1615
1615-1645
1700
INSTITUTIONAL DEVELOPMENT OF THE FINANCIAL SECTOR IN SMALL STATES
The Role of the Financial Regulator
Visit to the Malta Stock Exchange, Valletta
Lunch
The Stock Exchange in Malta
Coffee Break
The Insurance Market
Preliminary Discussion on Final Report
Return to Hotel
Tuesday 25 April
0900-1100
1100-1115
1115-1215
1215-1400
1430-1640
1700
COUNTRY PRESENTATIONS
Country Presentations by Participants
Wednesday 26 April
0900-1000
1000 -1100
1100-1115
1115-1215
1215-1400
1430-1645
1700
ASPECTS OF THE MANAGEMENT OF FINANCIAL INSTITUTIONS IN SMALL STATES
Staff training and Personnel Management Issues
Internal Audit Function and Corporate Governance
Thursday 27 April
0900-1000
1000-1100
1110-1115
1115-1215
1215-1400
1400-1500
1500-1515
1515-1645
1700
2000
FINANCIAL INVESTMENT IN SMALL STATES
The Insurance Market
Risk-Management Instruments
Friday 28 April
0900-1000
1000-1100
1110-1115
1115-1215
1245-1400
1400-1530
1530-1700
1700
CONCLUDING SESSION
A Small Island State in the EU: Issues Arising from a Banking Regulator’s Perspective
The Protection of the Financial Consumer Services
Coffee Break
Country Presentations by Participants
Lunch
Visit to HSBC Head Offices, Marsa.
Return to Hotel
Coffee Break
The Development of Relationship Banking
Lunch
Visit to Bank of Valletta Head Offices, Sliema
Return to Hotel
Coffee Break
Investment Alternatives in Small States
Lunch
Investing in Small States
Coffee Break
Investing in Small States: The Case in Malta
Return to Hotel
Conference Dinner
Coffee Break
Evaluation of Workshop and Conclusion
Lunch Break
Presentation, Discussion and Adoption of Final Report
Concluding remarks and Presentation of Certificates
Transport to Hotel
Notes
All lecture and discussion sessions will take place at the Aula Magna of the Foundation for International
Studies, University Building, St Paul Street, Valletta. Transport will be provided from the Hotel to the
Foundation for International Studies every morning and back to the hotel every evening. Transport in
connection with the visits to the institutions will be free of charge. All lectures and discussion sessions
will be conducted in the English language. Refreshments during coffee breaks and lunches are free of
charge.
TRAVEL & ACCOMMODATION
Travel
Participants should hold a valid entry visa before they arrive in Malta. 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 required to arrive in Malta on the date as designated by the
Commonwealth Secretariat.
Visas
Participants are to check whether they need an Entry Visa for Malta and to make the necessary
arrangements in good time for the visa to be issued before they travel. Details as to how one should
apply for a Visa to enter Malta, and a Visa application form can be obtained from the following website:
http://www.foreign.gov.mt/pages.aspx?page=12. These details can also be obtained from the Islands
and Small States Institute.
Arrival/Departure Transfers
Participants are to inform the Islands and Small States Institute about their arrival and departure
time, dates and their flight number. The Institute will arrange reception at the airport and transfers
from the 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 bed and breakfast basis. Transport will be provided
from the hotel to the conference venue and back.
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.
Map of Valletta
and Location
of the
Foundation
for International
Studies
S
FI
Foundation for
International Studies
St. Paul’s Street
THE ORGANISERS
The Governance and Institutional
Development Division (GIDD)
of the Commonwealth Secretariat
The role of the GIDD 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 peoplecentred 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 moneylaundering. 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.
MTSD targets its training at the specific skills needs of
senior and mid-level officials, managers and technologists,
through specialist group training programmes, work
attachments of study visits. Each year, some 3000 people
receive support for education and training in over 3000
institutions, mostly in the Commonwealth developing
countries. Special attention is paid to providing women
with increased opportunities for advancement.
The Malta Co-operation Programme
The Malta Co-operation Programme 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
http://home.um.edu.mt/islands
The Islands and Small States Institute forms part of the
Foundation for International Studies which is the
international arm of the University of Malta. The Institute
is located in the old University Building in Valletta. The
Institute 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) and collaborates with the Scientific
Council for Island Development, based at UNESCO, in
the publication of Insula, the International Journal of Island
Affairs (ISSN 1021-0814) 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. The
Institute is directed by Professor Lino Briguglio. The
day-to-day administration of the Institute is carried
out by Ms Maryrose Vella assisted by Ms Romina
Carabott and Mr Michael Debattista.
The Department of Banking and Finance
of the University of Malta
http://home.um.edu.mt/fema/depts/3
The Department of Banking and Finance, which is collaborating in the organisation of this programme, forms
part of the Faculty of Economics, Management and Accountancy (FEMA) of the University of Malta. The Department, together with other departments within FEMA,
offers banking and finance areas of study for general,
honours and masters degrees. The Department is located
at the New Humanities Building, at Tal-Qroqq Campus.
The University of Malta traces its origins to the founding
of the Collegium Melitense in 1592. It was originally
located at Valletta, but in the sixties, it established its main
campus at Tal-Qroqq, Msida. There are about 9000
students including about 700 foreign students, following
full or part-time degree and diploma courses, many of them
run on the modular or credit system. The degree courses
at the University are designed to produce highly qualified
professionals, with experience of research, who will play
key roles in industry, commerce and public affairs in
general. Associated with the University are the
Mediterranean Academy of Diplomatic Studies and the
Foundation for International Studies, while the campus is
also home to the IMO International Maritime Law Institute
and the International Ocean Institute (Malta Operational
Centre).
THE MALTESE ISLANDS
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
Gozo
area of 67 square km. The total
Comino
population of Malta is about
400,000, of which about 8%
live in Gozo.
Climate
The climate of the Maltese
Mainland
Islands is typically MediterMalta
ranean. A forecast on the
weather conditions and
average temperatures during
the days of the workshop can
be viewed on:
http://www.choosemalta.com/weather.php
Restaurants
There 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.
VALLETTA
Currency
Malta's currency is the Maltese Lira (Lm), which is
divided into 100 cents. At the time of publication of this
brochure the exchange rate is approximately Lm1 =
2.33.
Language
The official languages are Maltese and English. Almost
all Maltese speak English while Italian is widely spoken.
Banks
Banks are usually open from 08:30 Hrs. to 12:30 Hrs.,
Mondays to Fridays, and up to 12:00 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 24hour 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 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.
Transport
Malta's public bus transport system is very cheap and
provides an extensive network throughout the Island.
Chauffer-driven car service (known as black taxis) is
very reliable and relatively inexpensive. Participants
wishing to take white (roving) taxis are advised to
negotiate the fare with the driver beforehand.
Medical Care
Malta enjoys a high standard of medical care, and there
are several public and private hospitals and clinics on
the islands.
Electricity
Electricity supply is 240 volts, single phase 50 cycle.
The square-fitting standard 3-pin British plugs and
sockets are used.