Malta 'nowhere near' being greylisted for a second time, BOV chief says. The country's financial regulator and credit institutions have strengthened their controls and increased investments in transaction monitoring since its appearance on the Financial Action Task Force (FATF) greylist five years ago.
Bank of Valletta's chief executive officer Kenneth Farrugia pointed to this "significant shift" as a reason why Malta is not at risk of being greylisted again. He noted that when BOV recently issued a €200 million international bond, concerns about Malta and financial crime were practically non-existent, which was not the case in 2022.
Farrugia said that around 90% of the bank's customer base is domestic, with new customers entering due to an increase in foreign nationals moving to Malta for work. However, this trend does not reflect high-net-worth accounts. BOV has maintained a "clean bill of health" post-FATF greylisting, especially through its correspondent banking relationships.
The bank holds a market share of around 50% in respect to deposits and commercial lending, which Farrugia described as a position that comes with responsibility. With Greek lender CrediaBank set to enter the market by the end of the first quarter of next year and fintech platforms like Revolut becoming increasingly popular, BOV is not fearing competition.
Instead, the bank is focused on understanding its positioning in the market and where it wants to retain leadership. Farrugia noted that while CrediaBank's acquisition of HSBC's shareholding will bring a new drive to the company, BOV has its own strategic objectives and business plan.
BOV chairman Gordon Cordina highlighted the importance of regulatory requirements, which he said the bank is already coping with well. However, the bank is also investing in digital aspects to service younger customers efficiently in their everyday payment needs. Farrugia noted that BOV has recently upgraded its digital offering, which will be onboarded gradually between now and early next year.
Looking ahead, Cordina stressed that resilience will become a key consideration due to geopolitical tensions and cybercrime risks. "Safety first" will be an important consideration for customers, he added.
