In another very recent Special Report, Fitch Ratings also suggests Malta’s differences from Cyprus far outweigh the similarities, and that Malta’s banking sector does not face the risks of Cyprus’ before its bail-out. Fitch Ratings has affirmed Malta’s long-term foreign currency and local currency ratings at ‘A+’ with a stable outlook.
Fitch continues by affirming that Malta’s banking sector does not face the risks of Cyprus’ since Malta’s much smaller domestic banking sector relies less and less on non-resident deposit funding, on negligible ECB/ELA funding, has stronger asset quality and capital buffers and is more effectively supervised financially – all these factors make it fundamentally different from its Cypriot counterpart.
"While both Malta and Cyprus seemingly have large banking sectors that substantially exceed the size of their economies and that rely to some degree on funding from non-resident depositors, a closer examination reveals substantial differences," the agency said.
Fitch’s findings, added to the Commission Malta Report 2013 which also concludes that “the Maltese economy demonstrated resilience throughout the crisis” and that “Comparisons between Cyprus and Malta continue to appear misplaced” al go to show that Malta is justifiably looked at as a country that has remained resistant to the negative consequences which hit a number of other euro area jurisdictions over the past year.
