The financial news provider Bloomberg this morning analysed differences between the situations in Malta and Cyprus concluding that comparisons between the dangers posed by the banking systems the two countries appeared to be misplaced.

In its analysis "Banking Crisis, Bailout of Cyprus Unlikely to Be Repeated for Malta", the publication warned, however, that the rapid expansion of the Maltese financial sector had the potential to someday become a problem.

The analyses concluded that the most worrying aspect of the Maltese banking system was the recent speed of growth.

“The ratio of deposits to GDP rose to 172 per cent at the end of 2012 from 141 per cent at the end of 2005.

“The growth of the banking sector has far outpaced that of the real economy. The deposit base has grown by 66.8 per cent and the real economy has expanded by 37 per cent during that period.

“Another 20 years of growth at that speed would leave Malta with the same deposit-to-GDP ratio as that of Cyprus today, though Malta would still benefit from the presence of international banks.”

Bloomberg said that the growth of the Maltese banking

system could pose systematic risks as large as those in Cyprus decades down the road, if the current pace was maintained.

However, that appeared “like a long horizon for a monetary union plagued by many clear and present dangers”.