The Bank of Valletta group enjoyed a strong core equity tier 1 ratio of 10.6 per cent, significantly above the minimum nine per cent required by European regulation, it said this evening.

In a statement it said this could be seen in a report, published today by the European Banking Authority (EBA), on the level of capitalisation of European banks.

Core equity tier 1 ratio is the most commonly used measure of the adequacy of bank capital. It relates shareholder capital to risk-weighted assets.

"The capital strength of BOV is the result of the strategic priority which the group gives to capital management, with the objective of securing the sustainability of both the group and the Maltese financial system in the long term," group CEO Charles Borg said.

"Capital buffers are there to ensure business continuity, so the strength of these buffers must be maintained at all times. This is why we carry out internal capital forecasting and stress testing on a regular basis, as a central part of our risk management processes," he said.

BOV regularly participates in the stress tests conducted by the EBA, the MFSA and the Central Bank of Malta.