Sectoral Systemic Risk Buffer
The Systemic Risk Buffer ("SyRB") is a macroprudential tool emanating from the CRR/CRD framework which in turn has also been transposed in the Central Bank of Malta 
Directive No. 11 on Macroprudential Policy. The SyRB can be used to address risks that are both cyclical and non-cyclical in nature and which are not addressed by other macroprudential tools including the Countercyclical Capital Buffer (CCyB) and Other Systemically Important Institution (O-SII) buffer. The SyRB can also be applied to a subset of exposures and/or institutions. These characteristics enhance the flexibility of the SyRB in addressing specific systemic risks and mitigate their potential to have serious negative consequences to the financial system and the real economy in a specific Member State.
The Central Bank of Malta, in collaboration with the Malta Financial Services Authority (MFSA) and under the auspices of the Joint Financial Stability Board (JFSB), decided to set a Sectoral Systemic Risk Buffer (sSyRB) of 1.5%. This buffer will be applied on the amount of risk-weighted assets held against domestic loans secured by immovable property. The sSyRB addresses potential risks emanating from the increasing concentration of the Maltese banking sector's exposures to loans linked with the real estate market, which is being compounded by expansionary cyclical developments. The European Central Bank (ECB) and the European Systemic Risk Board (ESRB) have also been notified of the measure.
Additional details on the implementation of the buffer, particularly the aim of the buffer, its scope and application date, can be found in the 2026 Statement of Decision.