Financial Stability Report

The Financial Stability Report reviews and assesses the macro-financial conditions and developments of the financial system in Malta. It evaluates the resilience of the system and identifies sources of potential systemic risk. It also makes recommendations to preserve and, where necessary, improve the robustness of the financial system. Furthermore, the Report promotes awareness of the workings of the financial system and related financial stability issues. The Financial Stability Report is published on an annual basis with a mid-yearly update. Summary reports for periods prior to 2008 can be found in respective editions of the Bank’s Quarterly Review and Annual Report.

FSR 2023

Press Release
Full Report
Executive Summary
Chapter 1 - Macroprudential Risk Assessment 1.1 Vulnerabilities outside the financial system 1.2 Vulnerabilities within the financial system 1.3 Risk horizon Box 1: Measuring the credit gap for Maltese private corporations using the Hamilton filter
Chapter 2 - Developments in the Banking Sector 2.1 Core domestic banks Box 2: Update on the Bank Lending Survey 2.2 Non-core domestic banks Box 3: The impact of the ECB's monetary policy tightening on deposits flows and interest margins 2.3 International banks
Chapter 3 - Stress Tests 3.1 Scenario-based solvency stress test 3.2 Liquidity stress tests 3.3 Interest rate risk in the banking book
Chapter 4 - Insurance Companies and Investment Funds 4.1 Domestic insurance companies 4.2 Domestically-relevant investment funds Box 4: Methodological update on the calculation of the liquid assets ratio for insurances and investment funds Box 5: Revisiting non-bank financial intermediation in Malta: A current financial stability overview
Chapter 5 - Macroprudential Policy Response 5.1 Capital-based macroprudential measures 5.2 Borrower-based measures 5.3 Other domestic measures 5.4 European regulatory developments Box 6: The systemic importance of O-SIIs in Malta
Appendices