Banking

Why is Malta a good place for banking? We think of mainly three reasons: 1) It is a midpoint between Western Europe, the Middle East, and North Africa. 2) It has a robust economy, sound macroeconomic policies, and a massive influx of FDI. 3) Its British heritage left the island a business-friendly legal system that protects privacy and property, which are two of the bases of business freedom

Thanks to this, Malta has established itself as a banking center and bridge between investors from the Middle East and Western Europe. The country holds more than €30b in deposits, and the amount continues growing. In a bit more than a decade, the country transformed its financial system. It passed from having four small banks serving locals in their daily businesses, to becoming the top financial center in the Mediterranean.

Malta’s banking system is one of the pillars of its economy. Not only for its size, as financial services comprise more than 15 % of the GDP, but also because Maltese banks usually have solvency rations that double the EU average.

How has this happened? Well, the sector went from a firmly controlled industry with a heavy public presence, to a market-driven industry, with full private participation. The government saw the opportunity and reformed the sector. This has also led to a growth in infrastructure and industry projects, as the health of the banking sector is vital for businesspeople seeking to diversify their investments. Several financial institutions use Malta as an expansion hub. It’s a safe jurisdiction to enter the EU market, and it’s also a perfect point from which to launch operations in the Middle East or North Africa.

The country boasts some of the most competent investment services in Europe, with high investment returns, and some of the best wealth management service providers in Europe. The financial services sector continues to thrive in Malta, and considering the macroeconomic stability the country possesses, which serves as the base for the industry, banking, and the financial sector in general, seems like a fantastic bet in Malta.

In Malta, banks are classified into three categories:

1. Core Domestic Banks,
2. Non-Core Domestic Banks, and
3. International Banks. The Malta Financial Services Authority (MFSA) supervises, with the ECB, the three largest domestic banks of the country.

The MFSA also supervises the rest of the banks, and it is the first filter for those organizations seeking to start operating in the financial industry in Malta.

You can read the Banking Act of Malta here and visit the Central Bank of Malta website.

Opening a bank account in Malta

Even if Malta has an incredibly secure system, it can be tough to participate in it. Maltese personal bank accounts are only open to citizens, residents, and foreigners living in Malta.

The requirements vary from bank to bank, but in general, they’ll ask for:

• Government-issued ID
• Proof of Maltese address
• Minimum deposit or a term deposit of max €500 that you can’t access for the first year you hold the account
• A reference letter from your latest bank that says you are solvent
• Proof of employment

For expats, we recommend opening an account in the larger banks, as they are mostly used with dealing with foreigners and don’t ask for too many requirements.

Opening a corporate bank account is as advantageous and as hard as a personal account.

You usually must provide:

• Articles of association and proof of registration
• Government-issued IDs and proof of address of directors and beneficial shareholders
• Banking reference letters of directors and shareholders

Thanks to our first-level experts, we can help you open a bank account in Malta. Whether it is for a trading or holding company, a licensed business, a trust, or a foundation, we can help you! All you need to do is contact us right now.

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