Malta’s banking sector should withstand pandemic – central bank

Central Bank of Malta
Frank Vincentz

Malta’s banking sector is generally well-capitalised, but some lenders could come under pressure if the Covid-19 pandemic persists, the country’s central bank says.

The Central Bank of Malta says some banks would struggle to maintain liquidity “owing to suspended repayments and already committed credit lines”, should the spread of Covid-19 continue.

“Covid-19 will have an impact on the extent of new credit and banks’ asset quality with a potential increase in provisioning levels and write

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