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Overview
Malta is continuously establishing itself as an international banking center and financial hub in the Mediterranean region despite the ongoing crisis in the Eurozone. Some of the benefits of conducting banking activities in the Malta region are: -
- Secure location for assets and savings.
- Approximately 70 double taxation treaties.
- Diversified industries offer various 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).
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The Hargreaves Lansdown provides access to a range of investment products and services for UK investors.
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 three main categories: -
- Core domestic banks are universal banks with a wide range of services operating through a branch network in the country's main cities.
- Non-core domestic banks offer a restricted area of banking services for residents and foreigners.
- International banks mostly deal with foreign customers or businesses outside Malta's borders.
List of Top 10 Banks in Malta
- Bank of Valletta plc
- HSBC Bank Malta
- FIMBank plc (First International Merchant Bank)
- Sparkasse Bank
- IIG Bank (Malta) Ltd.
- Akbank TAĹž
- Credorax
- AgriBank PLC
- BNF Bank p.l.c. (Banif Bank)
- FCM Bank Ltd.
Let us discuss each of them in detail -
#1. Bank of Valletta plc.:
Bank of Valletta plc was previously known as the National Bank of Malta. Its headquarters are in Santa Venera. It is the oldest and largest financial service provider with specialized retail and loans, checking accounts, and different financial products like savings accounts, bank overdrafts, and certificates of deposits." url="https://www.wallstreetmojo.com/commercial-bank/"]commercial banking and representative offices in Italy, Australia, and Belgium. The Bank of Valletta was established in 1974 with an employee strength of over 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
- Bancassurance
- Foreign exchange services
- Internet and mobile banking services
The 12 monthly profits from 1st Oct’16 – 30th Sept’17 is €97.923 billion.
#2. HSBC Bank Malta:
A subsidiary of HSBC Europe BV, Malta's leading international banking and financial services group. The headquarters are in Valletta, Malta, offering Retail banking and wealth management, commercial banking, and global banking and market segments. The bank manages 28 branches and entities in Malta, including 3 in Gozo. For the six months ended 30th June 2017, the HSBC Bank Malta has recorded a net profit of €16.85 billion.
#3. FIMBank plc (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, which subsequently changed the name to FIMBank 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, and custody/depositary services. It is a licensed credit institution headquartered in Sliema, Malta, and is also in possession of two investment service licenses: –
Category 2: Authorised to provide any investment service and hold or control the clients’ money or assets but not deal or underwrite on their behalf.
Category 4a: Authorised to act as trustees or custodians of collective investment schemes.
#5. IIG Bank (Malta)Ltd.:
The bank was established in Malta in March 2010 and rapidly earned a reputation as a trustworthy financial institution offering the highest classes of services. It is a participant in the depositor compensation scheme and is fully licensed. The bank specializes in: –
- Prime accounts
- Trade finance
- Corporate banking
- Currency exchange
- Internet banking
- Term deposit accounts
Its headquarters in St. Julian serves customers in Europe, the Middle East, Asia, and Africa. For 2016, IIG Bank recorded a net profit of $2.8 million.
#6 - Akbank T.A.Ĺž.:
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 T.A.Ĺž. has a presence around the globe, offering services such as: -
- Consumer banking
- Corporate banking
- Private banking
- Investment banking
- Mortgage loans
- Foreign exchange
- Securities trading
- International financing
For 2016, the net income recorded was 3.7 billion Lira.
#7. Credorax:
Established in 2007 by technological experts, Credorax is one of the world’s first hi-tech firms to be a principal member of Visa Europe, Mastercard, and a financial institution licensed under the PSD (Principal Services Directive). The bank provides integrated, acquiring, and payment processing services to merchants within the European Union (EU) and other EEC (European Economic Community) states. The bank will focus on end-to-end business services and tools required to grow an online business with maximum success.
#8. AgriBank PLC:
Founded in 2012 by an experienced banker, the bank is a regulated credit institution with a primary focus on providing asset finance to the agricultural industry of the UK. The main business is: -
- Financing landowners (farmers) in the UK
- Purchase of farm machinery and equipment
- Financing construction of buildings
- Purchase of land
- Financing of farm energy projects
They operate solely through an online platform and obtain their funding through equity, bonds, retail deposits, and wholesale funding.
#9. BNF Bank plc (Banif Bank):
Banif Bank, now known as BNF Bank plc, was established in 2008 based in Gzira, with 12 branches across the Maltese regions managing three corporate and Business banking centers and a localized trading room. It has a network of retail and business branches supported by electronic banking facilities and trade finance 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 Ltd.:
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 keeps the costs down and benefits the end customers. In 2015, the total assets of FCM Bank Ltd. were €5,700 million, giving a market share of 0.23%. With its headquarters in St. Julian, 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-competitive interest rates ranging between 2.8% to 3.7% per annum.
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