Malta Financial Services Industry
FinanceMalta, a para-statal body which promotes Malta’s International Financial Centre, held its 5th annual conference today. Malta’s success in the financial services industry was highlighted as where the numerous initiatives implemented for its continued long-term success.
Malta’s economic growth
Malta’s economy has reported organic growth over the years and weathered the global financial crises as well as the more recent European turmoil well. Malta banks have retained an originate-to-hold model, financing their loans from deposits received. The shortage of liquidity on the interbank market consequently did not impact on their profitability. Twenty-five banks are registered in Malta, offering an attractive range of services internationally.
The financial services industry is the fastest growing sector of the local economy. Malta boasts of a fully EU compliant legal system which was carefully drafted to provide a competitive edge to operators setting up in Malta. To date 500 funds have opted to base themselves in Malta, bringing a net asset value in the €8.5 billion mark.
Looking to the future
Not looking to rest on its laurels, the establishment of a think-tank dedicated to the financial services industry was announced. The Hon. Tonio Fenech, Malta Minister for Finance, the Economy and Investment explained that its aim will be to help Malta maintain its competitive edge in the industry, pushing for new developments to reflect global investment needs and trends.
