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Video: Reuters
Malta's two largest retail banks have passed a Eurozone-wide
stress test, a review by the European Central Bank shows.
The year-long probe evaluated the strength of the loan
portfolios issued by Bank of Valletta and the subsidiaries of
international banks, HSBC and Deutsche Bank.
The results showed that the three banks had no capital
shortfalls in both a baseline and adverse scenarios analysed by the
ECB.
Bank of Valletta's results showed that the bank had adequate
capital reserves to cover loan provisions.
The results were expressed in a ratio known as CET1, a
widely-used measure of resilience to unexpected losses, which
relates the risks assumed by a bank to its regulatory capital and
reserves.
