https://www.um.edu.mt/library/oar/handle/123456789/4647 Sun, 08 Nov 2026 00:24:45 GMT 2026-11-08T00:24:45Z https://www.um.edu.mt/library/oar/handle/123456789/150787 Title: Sectoral and regional volatility connectedness : the case of CDS spreads and equities Authors: Manicaro, Christian Abstract: This study analyses volatility connectedness at sectoral and regional level within and across the US, UK, EU and Japanese regions between the CDS and equity markets. Analysis is made on 32 sectors and 70 sub sectors within the regions under study with each having 2,479 observations, covering the period between 2008 until June 2017. The sample is divided between crisis and after crisis period and the novel connectedness index by Diebold Yilmaz ( is proposed. The domestic and regional analysis show that connectedness between the two asset classes is in general higher during the crisis period. Although the static Gaussian results for the regional analysis show low levels of connectedness across the board, the dynamic analysis show significant connectedness levels, with level s being predominantly higher during the crisis period, signifying contagion effects also at regional level between the two asset classes. When considering the dynamic volatility connectedness between the two asset classes, equity is the asset class which transmits volatility the most. In the US and EU connectedness between the two asset classes in most sectors is predominantly large during disturbed periods, particularly the 2009 crisis and the EU sovereign crisis. Sun, 01 Jan 2023 00:00:00 GMT https://www.um.edu.mt/library/oar/handle/123456789/150787 2023-01-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/150694 Title: The MFSA's outcomes-based approach to supervision : the importance of outreach Authors: Buttigieg, Christopher P.; Ellul, Benjamin Abstract: This article examines the MFSA’s compliance outcomes based supervisory framework and the use of sector wide “Dear CEO” letters as a supervisory tool. It argues that these letters amplify supervisory impact by extending lessons from inspected firms to an entire sector and that their effectiveness depends on measurable outcomes. Using a three tier assessment framework covering transmission, remediation, and outcomes, the paper shows how regulatory expectations can drive sector wide behavioural change. It concludes that structured outreach provides financial supervisors with a scalable and cost effective way to strengthen supervision, market integrity, and regulatory compliance. Thu, 01 Jan 2026 00:00:00 GMT https://www.um.edu.mt/library/oar/handle/123456789/150694 2026-01-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/150693 Title: From passive financial monitoring to intrusive supervisory engagement : a case study Authors: Buttigieg, Christopher P.; Micallef, Daphne Abstract: In the wake of the pandemic, many financial firms rushed to change their business strategies, at times exposing deep structural weaknesses. This article examines an insurance company that attempted a change in business model and growth without the necessary governance and competence. The study details how supervisors shifted from passive monitoring to intrusive engagement, ultimately halting new business to force a rebuild of internal controls. This study bridges the gap between abstract theory of regulation and the applied day-to-day mechanics and challenges of supervising the implementation of regulation in practice to achieve the desired consumer protection and financial system integrity outcomes. It reaffirms that where critical situations arise a financial supervisor must quickly shift supervisory approach from a passive monitor to intrusive supervisory engagement. Thu, 01 Jan 2026 00:00:00 GMT https://www.um.edu.mt/library/oar/handle/123456789/150693 2026-01-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/150035 Title: Rethinking retail deposit supervision in the digital banking age Abstract: Online Deposit Platforms (ODPs) are transforming European retail banking by removing geographic barriers, allowing smaller credit institutions to access cross-border liquidity without physical branches. However, ODPs convert granular retail savings into rate-sensitive, highly volatile balances resembling short-term wholesale funding, challenging standard microprudential runoff assumptions under stress. Additionally, layered structures like fiduciary omnibus accounts obscure depositor visibility, fragment compliance responsibilities and elevate financial crime risks. To address these risks, European regulators must move from entity-centric supervision to an activity-based paradigm. This requires platform-specific stress testing, real-time transparency into pooled accounts and binding compliance standards across the intermediation chain. Thu, 01 Jan 2026 00:00:00 GMT https://www.um.edu.mt/library/oar/handle/123456789/150035 2026-01-01T00:00:00Z