Overview
Malta is continuously establishing itself as an International Banking Centre and Finance hub in the Mediterranean region despite the ongoing crisis of the Eurozone. Some of the benefits of conducting banking activities in the Malta region are:
- Secured location for Assets and Savings
- Approximately 70 double taxationDouble TaxationDouble Taxation is a situation wherein a tax is levied twice on the same source of income. It usually occurs when the same income is taxed both at corporate as well as at the individual level.read more treaties
- Diversified industries across the region offering a wide range of financial services such as Custodian banking and Trade Finance
- Benefits of EU membership with a prompt, efficient and accessible regulator.
- Governed by the Central Bank of Malta Act (2002) and Banking Act (1994)
Structure of Banks in Malta
The Malta Financial Services Authority (MFSA) is the sole regulator of the country for the issuance of the license and supervision of the credit and financial institutions. The foreign and local banks functioning in Malta are grouped into 3 main categories:
- Core domestic banks which are the Universal banksUniversal BanksUniversal banking, in contrast to traditional banking institutions, offers a wider range of banking and financial services, including insurance, development banking, investment banking, commercial banking, and other financial services.read more with a wide range of services operating through a branch network in the main cities of the country
- Non-core domestic banks which offer a restricted area of banking services for residents and foreigners
- International Banks which mostly deal with Foreign customers or businesses outside Malta borders
List of Top 10 Banks in Malta
- Bank of Valletta
- HSBC Bank Malta
- FIM (First International Merchant Bank)
- Sparkasse Bank
- IIG Bank
- Akbank TAS
- Credoarax
- AgriBank
- Banif Bank
- FCM Bank
Let us discuss each of them in detail –
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#1. Bank of Valletta
This bank was previously known as the National Bank of Malta with its headquarters in Santa Venera. It is the oldest and largest financial service providers with specialized services in Retail and Commercial BankingCommercial BankingA commercial bank refers to a financial institution that provides various financial solutions to the individual customers or small business clients. It facilitates bank deposits, locker service, loans, checking accounts, and different financial products like savings accounts, bank overdrafts, and certificates of deposits.read more. It has representative offices in Italy, Australia and Belgium. The bank of Valletts was established in 1974 with employee strength in excess of 1500. Apart from traditional banking services of accepting deposits and giving loans, they also offer:
- Life Insurance and Retirement products
- Card services
- Wealth Management services and Stockbroking
- BancassuranceBancassuranceBancassurance refers to the partnership of a bank and a life insurance company that permits the latter to offer its products to the former's clients. Such an arrangement is beneficial to both the organizations by increasing their customer base, revenue and paving the way for expansion.read more
- Foreign Exchange services
- Internet and Mobile banking services
The 12 months profit from 1st Oct’16 – 30th Sept’17 is Euro 97.923 billion.
#2. HSBC Bank Malta
A subsidiary of HSBC Europe BV, the bank is the leading international banking and financial services group in Malta. The headquarters are in Valletta, Malta offering services in the sectors of Retail BankingRetail BankingRetail banking or personal banking refers to the financial services offered by the financial institutions exclusively to the individual clients. The consumer banking provides personal loan, savings account, debit cards, credit cards, locker, etc.read more & Wealth Management, Commercial Banking, and Global Banking & Markets segments. In Malta, the bank manages 28 branches and entities inclusive of 3 in Gozo. For the 6 months ended 30th June’17, the HSBC Bank Malta has recorded a Net profit of Euro 16.85 billion.
#3. FIM (First International Merchant Bank)
The bank was established in 1994 and commenced operations from 1995 onwards. It is one of the leading providers of:
- Trade Finance
- Factoring
- Forfaiting
- Treasury
In June 2001, the shares were listed on the Malta stock exchange and the name was subsequently changed to FIM Bank P.L.C. For Year to Date (YTD) 2017, the Net Profit was $4.12 million.
#4. Sparkasse Bank
Established in 2000, the bank offers Private Banking, Investment Services, and Custody/Depositary services. It is a licensed Credit Institution headquartered in Sliema, Malta and also in possession of two Investment Service Licenses:
Category 2: Authorised to provide any Investment Service and to hold or control the Clients’ money or assets but not to deal or underwrite on their behalf
Category 4a: Authorised to act as trustees or custodians of Collective Investment Schemes.
#5. IIG Bank
The bank is established in Malta in March 2010 and rapidly earned a reputation of a trustworthy financial institution offering the highest classes of services. It is a participant of the Depositor Compensation scheme and fully licensed. The bank specializes in:
- Prime Accounts
- Trade Finance
- Corporate Banking
- Currency Exchange
- Internet Banking
- Term Deposit accounts
With its headquarters in St. Julians, it serves the customers in Europe, Middle East, Asia, and Africa. For the year 2016, IIG Bank recorded a Net Profit of $2.8 million.
#6 – Akbank TAS
It is one of the largest banks in Turkey established in 1948. It has evolved from offering funding services to local cotton growers to a full-fledged universal bank. Akbank TAS has a presence around the globe offering services such as:
- Consumer Banking
- Corporate Banking
- Private Banking
- Investment BankingInvestment BankingInvestment banking is a specialized banking stream that facilitates the business entities, government and other organizations in generating capital through debts and equity, reorganization, mergers and acquisition, etc.read more
- Mortgage Loans
- Foreign Exchange
- Securities Trading
- International FinancingInternational FinancingInternational Finance is a section of Financial Economics that deals with the macroeconomic relationship & monetary transactions between 2 or more countries. It includes concepts like Exchange Rates, Interest Rates, FDI, & Balance of Payments etc. read more
For 2016, the Net Income recorded was 3.7 billion Lira.
#7. Credoarax
Established in 2007 by technological experts, Credoarax is one of the world’s first hi-tech firms to be a Principal Member of Visa Europe and Mastercard and a financial institution licensed under the PSD (Principal Services Directive). The bank provides integrated and acquiring and payment processing services to merchants within the European Union (EU) and other EEC (European Economic Community) states. The bank will have a focus on end-to-end business services and tools required to grow an online business with maximum success.
#8. AgriBank
Founded in 2012 by an experienced banker, the bank is a regulated credit institution, with a primary focus on providing asset financeAsset FinanceAsset financing is defined as a loan taken out by an organization using balance sheet assets as collateral, such as land and buildings, vehicles, machinery, trade receivables, and short-term investments. The asset's value is divided into regular payment intervals of the asset's unpaid portion plus interest.read more to the agricultural industry of the UK. The main business is:
- Financing Landowners (farmers) in the UK
- Purchase of Agricultural machinery and equipment
- Financing Construction of buildings
- Purchase of Land
- Financing of Farm Energy projects
They operate solely through an online platform and obtain its funding through Equity, Bonds, Retail deposits, and Wholesale funding.
#9. Banif Bank
It was established in 2008 based in Gzira operating with 12 branches across the Maltese regions managing three Corporate and Business bankingBusiness BankingBusiness banking refers to a bank or financial institution that focuses solely on businesses and corporate clients, offering products such as business loans, asset management, and electronic fund transfers that are tailored to their specific needs.read more centers and a localized trading room. It has a network of both retail and business branches supported by electronic banking facilities and trade financeTrade FinanceTrade Finance is the funding of trade transactions (both domestic and international). It is conducted in the presence of both buyer and seller and can be facilitated with the help of various intermediaries like banking and financial institutions.read more solutions to offer innovative banking solutions for both personal and business consumers. The bank operates as a subsidiary of Al Faisal International Investment Co.
#10. FCM Bank
The bank is a Maltese credit institution operating since 2010 and specializes in savings and fixed deposit products. The bank operates online with low penetration of brick and mortar branches which enables to keep the costs low and pass on the benefits to the end customers. In 2015, the total assets of FCM Bank were EUR 5,700 mm giving a market share of 0.23%. With its headquarters in St. Julians, the focus is on delivering simple and high-value products. The flagship products are the Fixed Term Deposit accounts, where a minimum of €2,000 is deposited for a one-to-five year term, with highly-competitively interest rates ranging between 2.8 percent to 3.7 percent per annum.
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