Maltese Banks continuously strive to maintain their security by participating in regular stress tests conducted by the EBA, the Malta Financial Services Authority (MFSA) and the Central Bank of Malta.
According to a report on the level of capitalisation of European banks published by the European Banking Authority (EBA) in October, the Bank of Valletta currently enjoys a healthy core equity tier 1 ratio of 10.6 per cent. Based on an analysis of the bank’s shareholder capital in relation to its risk-weighted assets, this figure significantly surpasses the minimum figure of 9 per cent required by European regulation, with the core equity tier 1 ratio being the most commonly used assessment of the tenacity of bank capital.
According to Charles Borg, CEO of the BOV group, “the capital strength of BOV is the result of the strategic priority which the group gives to capital management, with the objective of securing the sustainability of both the group and the Maltese financial system in the long term... Capital buffers are there to ensure business continuity, so the strength of these buffers must be maintained at all times. This is why we carry out internal capital forecasting and stress testing on a regular basis, as a central part of our risk management processes.”
Maltese Banks continuously strive to maintain their security by participating in regular stress tests conducted by the EBA, the Malta Financial Services Authority (MFSA) and the Central Bank of Malta.
