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The balance sheet of the Central Bank of Malta as at end May 2007 provides some interesting reading.
The external assets in May compared to the provisions have increased by nearly Lm14 million. A note to the Accounts explains that the External Assets increase is attributable to reversible inflows. No further details are given.
The Bank’s investment in Malta Government Securities has increased in May by circa fourteen and a half million Malta lira, which has also contributed to the increase in total value of assets.
However, in a Balance Sheet, the Assets and Liabilities have to equal each other. Turning on to the Liabilities side, whereas there has been no substantial change in the Capital and Reserves figures, the amount of currencies issues has decreased by Lm13.5 million. The decrease is mainly attributable to the value of notes issued. This has resulted that the per capita amount of currency to the members of the Maltese population stands at 11,165.
Notable increases were registered in the funds held by the Commercial Banks that are deposited with the Central Bank. The total increase in deposits in May alone was of nearly Lm38 million. The Balance Sheet reflects the position just after the announcement by the Governor following the meeting of the Monetary Policy Committee, where in a hike in the Central Bank’s intervention rate was announced. The effectiveness of this interest increase will be reflected in future reports. |
