Malta’s Banking Industry Sets Highest Standards in Europe

Malta’s banking industry has earned a reputation for its robust regulator, effective regulatory regime, and top-notch service standards. With some of the safest and most liquid banks in the eurozone, Malta is rapidly emerging as a major financial hub in the Mediterranean region.

A Thriving International Banking Centre

Over the past decade, Malta’s banking sector has undergone significant transformation, transforming from a small retail market to a thriving international banking centre. Today, Malta-based banks hold over €30 billion in deposits, attracting leading global banking groups and institutions to set up operations in the country.

Strong Backbone of Economy

Malta’s strong banking sector has long been the backbone of its economy, supporting growth across various sectors. Local banks boast some of the highest capital buffers in Europe, with solvency ratios almost double the EU average.

Regulatory Environment

The regulator has played a key role in Malta’s banking success story, implementing liberalisation and foreign ownership measures that have attracted top-tier financial institutions to establish operations in the country. The Tier 1 regulatory capital of the domestic banking sector stands at an impressive 11.8%, far exceeding the required rate set by the Basel III accord.

International Recognition

In October 2014, the European Central Bank’s comprehensive review of Europe’s largest banks highlighted Malta’s robust banking system, noting that the country’s banks were substantially well-capitalized and remarking on the absence of specific risks in the financial sector.

Positive Outlook for Economy

Malta’s economy also remains strong, with economic growth prospects outpacing those of the Eurozone. The country’s institutions, resilient economy, and expected fiscal consolidation have earned it a positive outlook from ratings agency Standard & Poor’s, which revised its outlook on Malta to positive from stable in July 2015, predicting an upgrade within the next 24 months.

Prime Destination for International Banking

As such, Malta has established itself as a prime destination for international banking institutions seeking a secure, efficient, and highly regulated environment in which to operate. The country’s banking industry standards are among the highest in Europe, making it an attractive option for investors, financial institutions, and clients alike.

Key Highlights

• Malta’s banks hold over €30 billion in deposits.
• Local banks boast some of the highest capital buffers in Europe.
• The Tier 1 regulatory capital of the domestic banking sector stands at an impressive 11.8%.
• Malta’s economy outpaces that of the Eurozone, with a positive outlook from Standard & Poor’s.
• The country has established itself as a prime destination for international banking institutions.