Issue link: https://maltatoday.uberflip.com/i/405994
maltatoday, WEDNESDAY, 29 OCTOBER 2014 17 Events Release of monetary statistics The Central Bank of Malta has issued its commentary on monetary developments in July 2014 Deposits of Maltese residents In July, deposits belonging to resi- dents of Malta and held with resi- dent Monetary Financial Institu- tions (MFIs) grew by 15.7 million, or 2.1% (see Table 1). Given that this increase was larger than that recorded twelve months earlier, the annual growth rate picked up from 11.3% in June to 12.6%. As in previous months, deposit growth in July stemmed mainly from higher overnight deposits, which expanded by €163.0 mil- lion, or 2.7%. This mainly reflected higher balances belonging to non- financial corporations (NFCs) and non-bank financial intermediaries. The annual growth rate of overnight deposits rose to 17.6% from 16.0% a month earlier (see Chart 1). At the same time, deposits with an agreed maturity of up to two years put on €51.7 million, or 1.4%, fol- lowing a rise in deposits belonging to NFCs and non-bank financial intermediaries. The annual growth rate of these deposits rose to 5.5% from 4.7% in June. Meanwhile, deposits redeemable at a notice of up to three months rose marginally by €0.9 million, or 0.8%. Credit to Maltese residents In July, credit to Maltese residents expanded by €43.1 million, reflect- ing an increase in borrowing by res- idents other than general govern- ment. The annual growth rate rose from 3.3% in June to 4.2%. Credit to general government fell by €24.8 million, or 0.9%, follow- ing a decline in MFIs' holdings of government securities after the redemption of Malta Government Stocks during the month. As a re- sult, the annual growth rate slowed down marginally to 9.0% from 9.1% in June. Meanwhile, credit to other resi- dents expanded by €68.0 million, or 0.8%, mainly reflecting a rise in loans to NFCs, particularly to the energy sector. Moreover, credit to households expanded, driven by a rise in loans for house purchases. The annual rate of change of credit to other residents went up from 1.7% in June to 2.8% as a result. Net foreign assets of Maltese MFIs Net foreign assets belonging to Maltese MFIs contracted by €238.5 million, or 3.3%, in July. Foreign claims declined, mainly reflecting a fall in deposits placed with banks abroad. In contrast, foreign liabili- ties, mainly non-residents' deposits held with internationally-oriented banks, increased. As a result, net foreign assets contracted by 38.4% during the twelve months to July, following a 36.2% drop in the year to June. This year-on-year contrac- tion, in evidence since October 2013, largely reflects developments in the international banking sector, where a number of institutions have scaled back their operations in line with their restructuring strategy. Bank lending and deposit rates In July, the weighted average interest rate paid by MFIs on all euro-denominated deposits be- longing to resident households and NFCs fell by 5 basis points to 1.31%. Similarly, the weighted average interest charged by MFIs on outstanding loans to resident households and NFCs declined to 4.11%, from 4.16% in the previous month. The weighted average deposit rate was 11 basis points below its level a year earlier, while that charged on loans was 19 basis points lower. Further economic and monetary information can be obtained from the website of the Central Bank of Malta www.centralbankmalta.org MSV Life sponsors Actuarial Techniques diploma MSV Life employee Stephanie Mal- lia has completed her Diploma in Actuarial Techniques. Mallia is one of the seven team members forming MSV Life's Actuarial Department and she is currently studying to be- come a fully qualified actuary while working full time in the life insurer's specialised team. Mallia joined the MSV Life Actuarial Team three-and- a-half years ago. "These last few years were a huge learning curve for me," she says. "I studied B.Sc Maths and Statistics at University but at the time I had no idea what an actuary was. I first heard of the job when I was in my fourth year starting my thesis. "At once I knew it was a challenging job. MSV Life offered me to spon- sor my studies. Recently I've got my Diploma in Actuarial Techniques. For me this was a very important achievement which will help me even more in my work". "To become a qualified actuary one has to do a 15-exam actuarial course which lasts some six to seven years. The Diploma in Actuarial Tech- niques is awarded after finishing the first nine – or Core Technical – sub- jects. The B.Sc course at University and the work itself helped me a lot in my studies. "The exams are tough and without support and help from family and friends it wouldn't have been pos- sible to get my diploma. I would like to thank MSV Life for giving me this opportunity to progress in my career, studying while actually be- ing hands-on with the job. I am also grateful for the good advice and help I got on these exams from my senior manager Josef Gauci." "We are proud of Stephanie's achievements. Throughout the years, she has shown consistency, persever- ance and determination to qualify in this highly technical job. An actu- ary's job is to help a life insurer, in our case, predict and plan for the future and to protect itself from losses that would impact our policyholders. "Actuaries are the analytical back- bone of financial organisations like ours. When analysing and assessing risk and making financial forecasts, they depend on tested financial the- ory, mathematics and statistics, rath- er than guesswork. This helps them guide the company to set longer term strategies that will benefit both shareholders and policyholders," said Clayton Balkind, Chief Actuary at MSV Life. HSBC employees take time out to connect with difference HSBC Bank Malta hosted a 'Di- versity and Inclusion' day at their Qormi centre to celebrate the dif- ferent backgrounds and cultures of its employees and customers. Designed with the support of Richmond Foundation Malta to mark a Group-wide focus on dis- ability issues, the event had an em- phasis on mental health awareness and wellbeing in the workplace. The activities encouraged employees to build more effective relationships with customers and each other by appreciating each other's different abilities and perspectives. At the start, participants were given stressful scenarios and guided through de-stressing techniques that help bolster mental strength and awareness. Employees were then invited to experience head and foot massage, and try out medita- tion and yoga. Senior managers took part in the activities included in the mental health wellness marathon at the in- house gym. A plasma screen in re- ception area ran staff stories about how they deal with challenges and overcoming obstacles. HSBC Bank Malta Head of HR Mandy Garner said, "Our focus on mental health and wellbeing sup- ports HSBC Group's approach to diversity and inclusion, where all employees are encouraged to 'con- nect with difference'." "Mental health issues can affect any of us at any time, so we want our employees to be more aware of their own wellbeing and the impact stress can have on us and our customers." HSBC Bank Malta has established a number of initiatives to help fur- ther diversity and inclusion in the business. These programmes em- brace the uniqueness of its work- force, promote supplier diversity, and further partnerships within the community. Richmond Foundation Malta CEO Antoinette Shah said: "This event brought people from diverse back- grounds together to test the incred- ible strength of the human mind in dealing with our daily stresses and challenges in life. We hope the tips shared during the session will help the participants enjoy a more serene and de-stressed working life." Additionally, the Bank celebrates diversity with formal and infor- mal programmes as well as special policies and training. The Bank has more than 50 employee resource groups (ERGs), providing support and guidance to create an inclu- sive working environment where everyone can develop and pursue a fulfilling career. This helps HSBC meet the needs of different col- leagues and customers from all backgrounds. €2 commemorative coin issued to mark Independence ON 29 October 2014, the Central Bank of Malta will issue the fourth in a series of €2 commemorative coins highlighting milestones in Malta's Constitutional History. The theme of this coin is 'Inde- pendence – 1964'. The reverse side of the coin shows the €2 denomi- nation which is common on all the coins issued in this series. The coin obverse, which shows a national symbol, depicts a detail of the Independence monument at Floriana. It was designed by the Maltese artist Ġanni Bonnici. Following a formal request for Malta's independence by the Mal- tese Prime Minister, George Borg Olivier on 20 August 1962, the Maltese and British governments commenced discussions on an in- dependence constitution. After long and difficult nego- tiations, throughout 1963 a draft independence constitution was prepared and was approved by the UK Parliament on 23 July 1964. The date for Independence was set for 21 September 1964 when Malta formally became an independent sovereign state. The commemorative coin will be issued in circulation quality in rolls of 25 coins each, and a limited number will also be issued in Proof quality. The coins were minted by the Royal Dutch Mint. The Bank will be contacting all those who have placed their or- ders to inform them of their allo- cation, the means of payment and the dates on which they can collect their coins. For further informa- tion, the public is kindly requested to contact the Malta Coins Distri- bution Centre by an e-mail to cdc@ centralbankmalta.org or by calling (+356) 2550 6006/7/8. HSBC staff had a ball at the annual 'Diversity and Inclusion' day as they learned to appreciate workplace diversity