Malta banking sector

The island of Malta boasts of a high performing banking sector recognized within the European Union and beyond. The financial services provided are highly sought after by foreign investors making it one of the nation’s top GDP contributors. Malta offers an advantageous environment for investors looking for a stable home for their investments.
Legislature and regulation of the Maltese banking sector
The ease of doing business in Malta is lubricated by an efficient and appropriate legislature that was specially established for the banking sector. The banking sector in Malta is regulated by pieces of legislature that are focused on promoting security and efficiency. Maltese banks are subject to the Banking Act which in turn is compliant with the Basle Core Principles. 
Other Financial Institutions fall under the legislature of the Financial Institutions Act. As a member of the EU, the legislature in place adheres to the principles set by the regional block. As of 2011 legislature regarding the banking sector has been aligned to incorporate the EU Electronic Money Institutions Directive. This move was preceded by the transposition of provisions of the Payment Services Directive into law for the regulation of payment institutions in 2010.
The Regulatory Authority: the Malta Financial Services Authority (MFSA)
The Malta Financial Services Authority (MFSA) is the main regulator responsible for the banking sector. The MFSA has established itself as an accessible regulator with the ability to respond to the industry’s needs efficiently. Licensing falls under the jurisdiction of the MFSA and all institutions which seek to operate in Malta have to get licensed by this regulator. Compliance with the Maltese requirements is a must. EU licensed banking institutions seeking to operate in Malta are subject to supervision by the MFSA regardless of the licensing regulatory body. The number of international banks that have set up in Malta stand as evidence to the regulator’s effectiveness and success in implementing beneficial policies in the sector.
Access to a Single European Passport
Malta holds the advantage of being a member of the European Union and thereby offers a gateway to a single European passport. Liaison through the Maltese banking sector gives you access to investment opportunities within the EU that would otherwise be difficult to be a part of. Credit Institutions operating in the EU or EEA have European passporting rights which allow them to open offices in Malta and alternatively offer cross-border services in Malta on the license granted to them by their registration country’s regulator. 
Maltese registered institutions can also do the same by passporting their licenses to other countries within the EU. Banking Institutions with ambitions of setting up operations in the EU need look no further than Malta to set up their businesses. The island provides a stable and suitable environment from which to expand further into the EU territory.
The Malta Banking Sector is recognized for its low set-up costs in relation to other EU counterparts. The sector is supported by a well-equipped workforce and cutting edge communication technologies. A competitive fiscal and tax regime makes it even more attractive as an investment destination.
Professional Assistance
For more insights on the Maltese banking sector, you may contact SIGTAX. Our invaluable team, which consists of expert lawyers, accountants and consultants will give you detailed information and counsel during each step.  Our lawyers can provide you with finer details on the legal aspects pertaining to banking in Malta so that you don’t skip any necessary steps.


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