According to World Economic Forum's Global Competitiveness Report 2019, financial market development in Malta is scored 72.1 out of maximum 100.0 and ranked 32nd out of 144 analysed economies.
Chart 1. Financial Market Development in Malta. Source: WEF.
Soundness of banks is scored 5.4 bringing Malta into the 50th place.
Chart 2. Soundness of Banks in Malta. Source: WEF.
Banks in Malta are mainly focused on the following areas:
Currently there are 24 credit institutions operating in Malta.
In 2019 consolidated banking assets in Malta were 41,569.70 mln EUR. The consolidated banking assets' evolution is shown at Chart 3 below.
Chart 3. Consolidated banking assets in Malta.
Recent structural changes (2013 - 2018) of the banking sector of Malta are summarised in Table 1.
|Number of Opened Banks||0||3||2||0||0||0|
|Number of Closed Banks||0||3||1||1||2||2|
Table 1. Recent structural changes in the banking sector of Malta.
The list of the most recently opened banks in Malta is provided in Table 2.
All the credit institutions operating in Malta can be classified into several categories. Table 3 summarises the number of banks in each category.
|Category||Number of Banks|
|Branches of foreign banks||3|
There are 3 branches of foreign banks from 2 different countries in Malta. Table 4 shows the number of branches grouped by the country of origin.
|Country of Origin||Number of Branches|
Deposit guarantee scheme is a financial stability mechanism implemented in many countries to protect bank depositors against the loss of their deposits in the case when a bank is unable to meet its obligations to depositors by compensating certain deposits held by depositors of the bank. This compensation is paid out from the contributions which banks have made into a deposit guarantee fund.
From a depositor's point of view it is important to know:
All these details about deposit guarantee scheme in Malta are summarised in Table 5.
Table 5. Deposit guarantee scheme in Malta.
EEA stands for European Economic Area and consists of all EU member states plus Liechtenstein, Norway and Iceland.
Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.
Local currency (Euro) deposit ceiling for Malta is set to Aaa (prime), foreign currency deposit ceiling is Aaa (prime).
Chart 4. Deposit Rates in Malta. Source: ECB.