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Economy and Banking Sector of Malta

Financial System Development

Financial System
72.1, 32nd out of 144 countries
Banks' Soundness
73.6, 50th out of 144 countries

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.

Financial Market Development in Malta.

Chart 1. Financial Market Development in Malta. Source: WEF.


Soundness of banks is scored 5.4 bringing Malta into the 50th place.

Soundness of Banks in Malta.

Chart 2. Soundness of Banks in Malta. Source: WEF.

Further Information

Banking Focus

Banks in Malta are mainly focused on the following areas:

  • corporate banking
  • retail banking
  • universal banking

Banking Supervision

Central Bank of Malta

Banking Sector Structure

Number of Banks
24
Consolidated Assets (2019)
41,569.70 mln EUR  (-4.82%)
Recent Changes (2018)
new banks: 0, closed banks: 2

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.

Consolidated banking assets in Malta.

Chart 3. Consolidated banking assets in Malta.

Recent structural changes (2013 - 2018) of the banking sector of Malta are summarised in Table 1.

201320142015201620172018
Number of Opened Banks032000
Number of Closed Banks031122

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.

NameStart Date
Credorax Bank LimitedJune 2015
Yapi Kredi Bank Malta LtdJanuary 2015
SATABANK plcNovember 2014
ECCM Bank plcJuly 2014
PILATUS BANK PLCJanuary 2014
 

Table 2. The most recently opened banks in Malta.

All the credit institutions operating in Malta can be classified into several categories. Table 3 summarises the number of banks in each category.

CategoryNumber of Banks
Banks20
Branches of foreign banks3
Central banks1

Table 3. Number of banks by category in Malta.

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 OriginNumber of Branches
TR Turkey2
NL Netherlands1

Table 4. Number of branches of foreign banks in Malta grouped by country of origin.

Deposit Guarantee Scheme

Maximum Protected Amount
100,000 EUR

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:

  • if the depositor is eligible within the terms of the deposit guarantee scheme;
  • if the depositor's bank is a participant in the deposit guarantee scheme;
  • if the depositor's type of deposit is covered by the deposit guarantee scheme.

All these details about deposit guarantee scheme in Malta are summarised in Table 5.

Maximum Protected Amount
100,000 EUR
Temporary High Balance
500,000 EUR
Scheme Participants
all credit institutions operating in Malta
branches of Maltese banks operating in EEA
Scheme Exemptions
branches of non-EEA banks
Eligible Depositors
natural persons
  • residents of Malta
  • citizens of Malta
  • foreign residents
  • foreign citizens
legal entities
  • registered in Malta
  • registered abroad
Non-Eligible Depositors
banks
financial institutions
investment firms
insurance undertakings
collective investment undertakings
pensions and retirement funds
public authorities
Covered Accounts
most types of deposit are covered, including
  • current accounts
  • time deposit accounts
  • savings accounts
  • any accounts which, at the time of the banks’ failure, may be in credit (such as credit card accounts and overdrafts)
Paid In Currency
EUR

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.

Further Information

Country Ceiling for Deposits

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)
Aaa (prime)
Foreign Currency
Aaa (prime)

Local currency (Euro) deposit ceiling for Malta is set to Aaa (prime), foreign currency deposit ceiling is Aaa (prime).

Deposit Rates

Average Deposit Rate (Mar 2020, EUR)
0.45 % (unchanged)
In March 2020, an agreed annualised deposit rate in local currency (Euro) of new contracts with agreed maturity up to 1 year between credit institutions and households was 0.45% which was above the Euro Area average (0.31%).
Deposit Rates in Malta.

Chart 4. Deposit Rates in Malta. Source: ECB.

Further Information