Credit rating agency Fitch has issued a strong endorsement of the Maltese banking industry and the financial services sector as a whole in its assessment of different aspects of the Maltese economy.
In a detailed report published this month, Fitch explained that the Maltese banking sector is robust, despite its size. Capitalisation and liquidity ratios of systemically important core domestic banks are well above the minimum regulatory requirements, at 13.9% and 52.1%, respectively, as of June 2015, and profitability is improving.
In the broader economic context, Fitch expects the Maltese economy to continue to outperform eurozone peers, with projected average real GDP growth of 3.2% in 2016-2017, broadly in line with the 'A' median. The deficit is forecast to narrow to 1.1% of GDP in 2016 and 1% of GDP in 2017, down from an estimated 1.6% of GDP in 2015.
Fitch Ratings has affirmed Malta's rating at 'A' with Stable Outlook.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
