On 24 December 2025, the Central Bank of Malta in collaboration with the Malta Financial Services Authority (MFSA) under the auspices of the Joint Financial Stability Board (JFSB), decided to extend the current Sectoral Systemic Risk Buffer (sSyRB) of 1.5% originally applied on the amount of risk-weighted assets held against domestic mortgages exposures to natural persons and secured by residential real estate (RRE), to all exposures secured by immovable property in Malta. The tool is now also applicable to both natural and legal persons and covers all credit institutions in Malta engaged in the business of extending such credit domestically. The aim of the sSyRB is to address systemic cyclical and structural risks related to the exposure of the domestic banking system to the real estate sector risk via loans to households and NFCs secured by immovable property.
This Decision is applicable as from 30 June 2026, with the buffer rate remaining set at 1.5%.
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