The Finance Minister this afternoon played down European Commission concerns that high exposure to the property market made the banking system in Malta vulnerable.

Speaking during the launch of a the fourth edition of the Investment Guide and Business Directory by Finance Malta, Tonio Fenech said that the banking sector in Malta had been involved in EU stress tests and passed with flying colours.

The government also had full confidence in the banking sector.

"I appreciate the Commission's comments which were made in light of the reality in Spain and other countries. In Spain there was an overreliance on the property market but Malta's situation is different, the scarcity of land helps reduce the volatility of property prices."

The minister added that banks in Malta were cautious when approving loans and they had adequate provisions to cater for non-performing loans, which were very low.

In a communication to the EU Council, the Commission had urged the Maltese government to take measures to ensure the robustness of the financial sector.

The Investment Guide and Business Directory serves as the flagship publication for Malta's International Financial Centre and is considered the foremost reference source on every aspect of doing business in or through Malta.

With a controlled distribution of 10,000 copies to a prequalified audience of finance professionals and thousands more downloaded in PDF, the publication reaches a readership who not only needed the information but were was ready to act on it.