Reviewing the Maltese Banking Sector for 2016/2017

Developments and Impacts to the Local Banking Industry in 2017

Over the years, Malta has developed into a leading European financial services centre that integrates high regulatory standards with stringent enforcement, underpinned by sound and stable banks. A regulated, well-oiled Banking machine is critical to maintaining a stable and flourishing financial system. Malta remains an attractive jurisdiction for entities looking to open and operate a Credit Institution, serving both the local community as well as Europe as a whole.

As is the case for all jurisdictions, the Banking industry in Malta remains prone to external factors which provide a ripple effect – which could be positive or negative – in cases direct to the heart and soul of the Financial Services infrastructure. This calendar year has also seen the introduction and implementation of a number of supervisory and administrative measures under the Capital Requirements Directive IV, driven by the Single Supervisory Mechanism.

External factors that have transpired recently carry burdensome implications on Malta. Among these external factors that affect Malta, Brexit and Trump’s appointment are two that stick out. Standard & Poor’s ranked Malta as second out of the twenty countries which are most likely to be exposed by UK’s exit from the EU. 

In the financial services sector we are however seeing a form of stability emerge, albeit at a high cost. The European Macroeconomic environment continues to operate at artificially low interest rates, whilst our banks are experiencing dangerously high levels of liquidity, with limited options, in their view, to place locally. The regulatory machine continues to drive forward, with banks and financial institutions scrambling to minimise the disruption to their business model.

New Under the Microscope 2016/2017

Following upon the success of the first two editions of Under the Microscope which were issued in 2015 and 2016, the third edition of this publication has been released, which has now become a staple contribution by KPMG in Malta to the Banking and Financial Services community, both locally and internationally.   

The Publication focuses on analysing the financial positions of the banks that are part of the Malta’s financial system as well as bringing insights from our leading experts, hot off the press.

This edition of Under the Microscope will provide, among other insights:

  • Articles about a swiftly evolving banking industry that is contemporaneously seeking to meet the requirements being imposed by a rapidly changing regulatory environment;
  • An analysis of all 22 Credit Institutions operating locally;
  • A timeline depicting key milestones which have developed Malta’s Banking sector as we know it today; and
  • Insights from our experts into a more FinTech oriented banking ecosystem.
© 2017 KPMG, a Maltese civil partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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