This article is one of the most interesting articles for our readership. I would therefore like to draw your attention to this again today. Please note that opening an account in Malta – regardless of the bank – takes some time. The regulations are becoming ever stricter. For this reason, you should do everything right from the start with a Malta Limited.
Every client who sets up an LTD in Malta with the help of Dr. Werner & Partner will sooner or later need a bank account to ensure the company’s payment transactions. However, it is not absolutely necessary to open one in Malta. For example, we have some clients who maintain their accounts with an international bank outside Malta. However, if the opening of a Maltese bank account is desired, our Ms. Calov will be happy to assist clients with the preparation of documents and support them in their communication with the bank.
Below you will find an overview of the banks available in Malta. The following descriptions are not intended as an evaluation, but rather reflect our subjective experiences with the respective banks.
General information
Following the recent influx of foreign companies and their demand for foreign skilled workers, Malta has experienced an economic expansion. This has also increased the demand for local banking services to support the opportunities that have arisen in the local financial sector.
In fact, Malta is considered an international banking center and is valued just as much as other countries in the Mediterranean region. There are more than 20 active banks here in Malta. Each of them can provide domestic market financing and loans to local and foreign individuals and companies in Malta.
There is a clear distinction between the local retail banks, which offer a wide range of financial services to corporate and private clients, and the internationally oriented, specialized foreign banks, which were established in Malta and have little interaction with the local economy. Below you will find a list of banks currently operating in Malta: Agri Bank, AKBANK, APSbank, BOV Bank of Valetta, BNF Bank, Commonwealth Bank, Credit Europe Bank, credorax, ECCM Bank plc, Ferratum, FCM Bank, FIMBANK, HSBC, IIG Bank (Malta) Ltd, Izola Bank, LOMBARD, medidirect, MerkantiBank, NBG BANK MALTA, novum Bank, Sparkasse Bank Malta plc, Garanti BBVA, YapiKredi.
Individuals looking to start a business in Malta will find that the banking services offered by local financial institutions cater to both personal and business needs. Many local banks offer a convenient and comprehensive banking experience through their wide range of products, services and expertise. The services offered by local banks for private and business customers range from current accounts for business customers, savings accounts, term deposits, credit lines, overdraft facilities, debit/credit cards, trade financing, foreign currency accounts, foreign exchange services, direct loans, internet banking, cash letters, checkbooks and ATMs. Below you will find more information about major local banks that offer customized services for individuals who wish to open either a private or a corporate account:
Bank Of Valletta p.l.c – Malta’s largest bank
Bank of Valletta p.l.c. is a public limited company regulated by the MFSA and is authorized to provide banking and investment services in terms of the Banking Act (Cap. 371 of the Laws of Malta) and the Investment Services Act (Cap.370. of the Laws of Malta). The BOV was founded in 1974 following an agreement between the Maltese government and the Malta Development Corporation. The Bank’s financial services are offered through a network of 36 branches, 1 field office and 4 agencies in Malta and Gozo, as well as through a number of subsidiaries. It has also built up a global network of correspondent banks and maintains 4 representative offices in the UK (London), Brussels (Belgium), Italy (Milan) and Libya (Tripoli). Through these networks, the bank has created the necessary backbone to serve its customers in international banking and trading transactions.
The Bank of Valletta Group (the Group) consists of Bank of Valletta p.l.c. (the Bank) and two subsidiaries, namely BOV Asset Management Limited (BOVAM) and BOV Fund Services Limited (BOVFS). The Group also has two investments accounted for using the equity method, MAPFRE Middlesea p.l.c. and MAPFRE MSV Life p.l.c. The Group’s main activities are listed below.
The Group provides banking, financial and investment services and related activities in the Maltese domestic market. The Bank’s main activities comprise the following areas:
- The receipt and acceptance of customer funds for deposit into current, savings and term accounts, which may be denominated in euros and other major currencies,
- The provision of credit and loans to a wide range of customers, and
- the provision of investment services comprising a comprehensive range of investment products and services that meet the needs of clients throughout their lifecycle, including securities trading, advisory and discretionary portfolio management services.
- The Group also offers a range of other services including bancassurance, corporate advisory, fund management, fund administration and other services such as 24-hour internet banking, major credit card issuance, night depository facilities, ATMs, foreign exchange transactions, domestic and international remittances.
HSBC Bank Malta p.l.c – The most international bank in Malta
HSBC Bank Malta plc is registered in Malta under the name Mid-Med Bank Limited. The Bank’s ordinary shares have been listed on the official list of the Malta Stock Exchange since 1993.
In 1997, the bank’s status was changed to that of a public limited company. In the same year, it changed its name to Mid-Med Bank plc. In 1999 the bank changed its name again and was henceforth known as HSBC Bank Malta plc. The bank offers a comprehensive range of financial services, including retail banking and asset management, commercial banking and global banking and markets. The Bank is also active in the areas of life insurance and fund management through a number of specialized subsidiaries, as listed below:
- HSBC Life Assurance (Malta) Limited – HSBC Life Assurance (Malta) Limited – A company licensed by the Malta Financial Services Authority to carry on the business of insurance in Malta under the Insurance Business Act, 1998. A range of protection and investment life insurance products are distributed mainly through HSBC Bank Malta p.l.c., which is registered as a tied insurance intermediary under the Insurance Intermediaries Act 2006.
- HSBC Global Asset Management (Malta) Limited – A company that manages numerous funds operating in both the Maltese and international financial markets. It is the distribution partner for HSBC Global Asset Management’s range of funds and also specializes in providing bespoke discretionary portfolio management services to institutions and family offices.
BNF Bank p.l.c – the 3rd power in Malta
BNF Bank plc, formerly known as Banif Bank (Malta) plc, has been operating in Malta since 2008 and has become a major player in the Maltese banking sector.
Through its network of twelve retail branches spread across the Maltese Islands, a Corporate and Business Banking Centre and a local trading room, BNF Bank plc offers a highly personalized service to private and business customers.
JUD Investment Group Ltd is the majority shareholder of BNF Bank, holding 92.4% of the bank’s shares. This is a subsidiary of the Al Faisal Holding Group, one of the largest private diversified groups in Qatar. The remaining 7.6% of the shares are held by four Maltese shareholders: PG Holdings Ltd, Virtu Investments Ltd, Sak Ltd and Mizzi Capital Projects.
They launched their new brand identity in October 2017: BNF Bank, a brand that reflects their reinvigorated vision to increase market share, take the bank across new frontiers and create a great future.
Lombard Bank Malta p.l.c
Lombard Bank was founded in 1955 when Lombard North Central of the UK was operating in Malta and accepting deposits through agents. In 1969, Lombard Bank (Malta) Limited was registered as a wholly owned subsidiary of Lombard North Central p.l.c..
Today, Lombard Bank Malta p.l.c. is listed on the Malta Stock Exchange and is licensed and regulated by the Malta Financial Services Authority (MFSA) as a credit institution and as a provider of investment services and is an authorized foreign exchange dealer and a financial intermediary on the Malta Stock Exchange and a member of the Depositor Compensation Scheme and the Investor Compensation Scheme.
Lombard Bank focuses on corporate and private banking while developing a personalized and tailor-made service. It offers the full range of traditional retail and commercial banking services, including home loans, deposit accounts, credit and debit cards, trade finance and wealth management.
APS Bank p.l.c
APS Bank is a Maltese bank founded in 1910, the majority of whose shares are held by the Archdiocese of Malta and the Diocese of Gozo.
They offer a full range of personal banking services, including savings accounts, home loans and personal loans, but also provide comprehensive banking services to corporate clients. The bank also provides wealth management services, as it is licensed as an investment services firm and is also registered as a tied insurance intermediary. Such Wealth Management Services provide access to a selected range of products associated with APS Funds SICAV p.l.c. and other third party product providers.
The bank was incorporated as a private limited liability company in 1970 and received a commercial banking license in 1990. Since then, business activities have expanded considerably and today the bank employs over 400 people, who work in a modern head office in Birkirkara (Swatar) and in eleven branches in Malta and Gozo.
APS Bank is known for its ethical banking tradition and exemplary corporate social responsibility practices that support Maltese culture, arts and various charitable causes.
Medirect Bank (Malta) p.l.c
MeDirect Bank Malta plc, formerly known as Mediterranean Bank, is now the third largest bank in Malta with equity of around EUR 170 million and is regulated by the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA). Medirect’s head office is located in Sliema, with another branch in Victoria Gozo.
Medirect Bank Malta plc focuses mainly on savings, investments and wealth management for both private and corporate clients. MeDirect SA/NV, a subsidiary of Bank of Medirect Bank Malta plc, is based in Belgium and offers online investment opportunities and other savings products to private investors.
Conclusion
All of the banks mentioned take their compliance mandate very seriously, i.e. they scrutinize all directors and shareholders with the utmost care. We are not only talking about the careful examination of the documents submitted, but also about extensive background checks in the bank’s internal system.
If you are considering setting up a company in Malta and would like to engage the services of Dr Werner & Partner, you can be sure that we know all about the banking options available in Malta and will actively support our clients in choosing the right bank. One of the core elements of our service package for company formation in Malta is assistance with opening a bank account.
Note on an earlier version of the blog article: In an earlier version of the blog post, “Nemea Bank” was listed as another option. This no longer exists. She lost her license in 2017 and is therefore no longer available. This shows that the banking supervisory authority in Malta is taking a very close look at whether all regulations for a banking license are being met.
