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History of banking in Malta

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Banking emerged in primitive form through deposit-taking and money-changing activities, with temples and merchants in Mesopotamia, Greece, and Rome receiving deposits, issuing loans, and facilitating currency exchange to support trade and agriculture. The Middle Ages and Renaissance saw the organisation and commercialisation of banking, particularly in Italian city-states such as Florence and Venice, where merchant banks developed innovations like bills of exchange and branch networks to finance long-distance trade. The early modern and industrial era witnessed the institutionalisation of banking with the creation of central banks and more structured credit systems, exemplified by institutions such as the Bank of Amsterdam and the Bank of England, as well as innovations like fractional reserve banking and increased lending to governments and industries. The present-day global banking landscape is defined by rigorous regulation, international integration, and technological advancement, with banks functioning transnationally, adjusting to financial upheavals, and progressively depending on digital platforms, fintech, and artificial intelligence for service delivery and risk management.[1] (See main article: History of Banking)

The Maltese financial landscape was influenced by the various colonial powers that once ruled the islands and, subsequently, by the country's post-independence economic development. Since its accession to the European Union, the Maltese banking system has continued to evolve and assimilate into the broader European financial market. The timeline below presents significant milestones in chronological order, from the financial institutions established during the era of the Order of St John to the evolution of Malta's modern banking sector.

Timeline

1530–1798 (Knights of St. John)

The Sacred Treasury of the Knights of St. John, known as "il Comun Tesoro", carried out some financial functions associated with a bank.[2]

15 January 1598: Monte di Pietà was founded, providing low-interest loans against pawned items.[2][3]

1635: Massa Frumentaria, a mediaeval grain fund established, while also serving as a precursor to an investment bank.[2][4]

1798–1800 (French occupation)

The French seized all the assets of the Monte di Pietà and Massa Frumentaria.[2][5][6]

1800–1812 (British Protectorate)

23 June 1809: Anglo Maltese Bank — first Maltese formal bank.[2][7]

1 May 1812: Banco di Malta established, both precursors of Bank of Valletta.[2][7]

1812: Tagliaferro and Sons founded — the first private merchant bank.[2][7]

1813–1964 (British Colonial Period)

1830 Scicluna's et fils bank founded – another precursors of Bank of Valletta and the first bank to open branches (three in Valletta by 1890) and introduce cheques in Malta.[2][7][8]

21 November 1833, Government Savings Bank founded as a savings bank.[9]

1830s: James Bell & Co Ltd, shipping agency started to provide banking services to British military and navy personnel stationed on the island.[2][10]

1882: Anglo–Egyptian Bank founded in Malta, precursor of HSBC Malta.[7]

1910: The Unione Cattolica San Giuseppe founds the Bank of Apostleship of Prayer or Bank ta’ San Guzepp later renamed APS Bank, a savings bank.[8][11][12]

1925: Anglo–Egyptian Bank becomes part of Barclays Bank.[7]

1946: Anglo Maltese Bank and Banco di Malta merge to form the National Bank of Malta (NBM).[7][8]

1949: Scicluna et fils affiliated with the NBM group, as did Tagliaferro and Sons two decades later.[7]

1955: Lombard Bank founded.[8]

1963: Bank of Industry, Commerce and Agriculture (BICAL) established as a small commercial bank.[13]

1964–2004 (Post-Independence Era)

17 April 1968: Central Bank of Malta established.[14][15]

September 1969: the Central Bank of Malta released its first series of currency notes.[15]

1970: Central Bank of Malta established as Malta's banking regulator.[15]

May 1972: the Central Bank of Malta released its first series of coins, following decimalisation.[15]

November 1972: First major bank crisis in Malta following the fraudulent collapse of BICAL.[13]

6 December 1973: A run begins on the NBM with the Central Bank declining to provide assistance, seemingly under directives from Dom Mintoff.[7]

1974: Government takes over NBM without compensation to shareholders to set up Bank of Valletta.[7]

1975: Barclays Bank's Maltese subsidiary is nationalised and becomes Mid-Med Bank.[7]

1983-1986: Deposits held with the Malta Government Savings Banks transferred to other banks[9]

1990: The Bank of Apostleship of Prayer changed its name to APS Bank Ltd after being granted a commercial licence.[16][17]

1992: Bank of Valletta was the first public company to be listed on the Malta Stock Exchange.[13][18]

January 1993: Mid-Med Bank listed on the Malta stock exchange. [19]

13 April 1994: Lombard Bank listed on the Malta stock exchange. [20]

1999: HSBC acquires Mid-Med Bank, which becomes HSBC Malta.[7]

June 2001: Fimbank plc listed on the Malta stock exchange. [21]

23 July 2002: the Malta Financial Services Centre, governed by the Malta Financial Services Authority (MFSA), became the sole regulator of banking and other financial services.[15][22]

1 October 2002 The Financial Intelligence Analysis Unit (FIAU) is established to combat money laundering and the funding of terrorism and to monitor compliance with relevant financial legislation.[23]

2004–Present (post EU membership)

2 May 2005: The Maltese lira enters the EU’s Exchange Rate Mechanism (ERM II).[15][24]

1 January 2008: Malta adopted the euro as its official currency. At the same time, the Central Bank of Malta joined the European System of Central Banks (ESCB) and became part of the European Central Bank (ECB).[15][25]

2016-2018: The Panama Papers and Danske Bank money laundering scandal led to increased financial scrutiny of financial services. [26][27][28]

22 March 2018: MFSA seize control of the Pilatus Bank in Malta after its owner, Ali Sadr Hasheminejad, is arrested in the United States. [29]

15 October 2018: MFSA placed Satabank under administration due to money laundering concerns. [30][31]

September 2019: MONEYVAL published its Fifth Round Mutual Evaluation Report on Malta, highlighting weaknesses in Malta's banking sector in addressing money laundering and terrorist financing concerns, as well as the lack of resources and infrastructure in the country's anti-money laundering institutions. [32][33]

May 2021: MONEYVAL issued a follow-up report confirming legal and regulatory reforms but that the country will remain under scrutiny. [34][35]

June 2021: The FATF placed Malta on its grey list, highlighting deficiencies in the implementation of MONEYVAL evaluations. [27][28][36][37][38]

17 June 2022: The FATF officially delisted Malta from its list of jurisdictions under increased monitoring, attributing this decision to the “significant progress” made in rectifying the strategic shortcomings noted in 2021.[39][40][41]

27 June 2022: APS Bank listed on the Malta stock exchange. [42]

See also

Portal Malta portal


References

  1. ↑ Challoumis, Constantinos; Eriotis, Nikolaos (2025-01-14). "Evolution of banking systems: A comprehensive historical analysis". Journal of Contemporary Research in Business Economics and Finance (Learning Gate) 7 (1): 1-21. https://www.researchgate.net/publication/388055630_Evolution_of_banking_systems_A_comprehensive_historical_analysis. 
  2. ↑ 2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 Grima, Joseph F. (2019-06-16). "It happened this month: Malta’s first bank" (in en-gb). https://timesofmalta.com/article/it-happened-this-month-maltas-first-bank.714070. 
  3. ↑ Denaro, Victor F. (1958). "Houses in Merchants Street, Valletta". Melita Historica 2 (3): 161–164. http://melitensiawth.com/incoming/Index/Melita%20Historica/MH.02(1956-59)/MH.2(1958)3/orig04.pdf. 
  4. ↑ Debono, Jeremy (2015). "Treasury C: a re-discovered archive at the National library". https://www.academia.edu/50975534. 
  5. ↑ Arthur, Bonnici (1969). "A Debt that was never settled.". https://www.um.edu.mt/library/oar/bitstream/123456789/36890/1/1.pdf. 
  6. ↑ Savona-Ventura, Charles (1998). "Human suffering during the Maltese insurrection of 1798" (in en). Storja (1998): 48-65. https://www.um.edu.mt/library/oar/handle/123456789/25127. 
  7. ↑ 7.00 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 7.11 Jens Rudolf, Uwe (2018). "Historical Dictionary of Malta" (in en). Rowman & Littlefield. xxxiii, 37. https://dokumen.pub/historical-dictionary-of-malta-153811917x-9781538119174.html. 
  8. ↑ 8.0 8.1 8.2 8.3 Bonello, Giovanni (2025-03-31). "In pictures: Early banking in Malta" (in en-gb). https://timesofmalta.com/article/in-pictures-early-banking-malta.1107133. 
  9. ↑ 9.0 9.1 Consiglio, John (2024-02-21). "A page out of Malta’s banking history: the Malta Government Savings Bank" (in en-gb). https://timesofmalta.com/article/a-page-malta-banking-history-malta-government-savings-bank.1085056. 
  10. ↑ Times of Malta (2019-12-06). "The early years of banks in Malta" (in en-gb). https://timesofmalta.com/article/the-early-years-of-banks-in-malta.755158. 
  11. ↑ Borg, Darren (2022-01-25). "History of Banking and Banks in Malta" (in en). https://www.drwerner.com/en/history-of-banking-and-banks-in-malta/. 
  12. ↑ Grima, Noel (2017-02-13). "The founder of APS Bank". https://www.independent.com.mt/articles/2017-02-13/books/The-founder-of-APS-Bank-6736170328. 
  13. ↑ 13.0 13.1 13.2 Jens Rudolf, Uwe (2018). "Historical Dictionary of Malta" (in en). Rowman & Littlefield. 38. https://dokumen.pub/historical-dictionary-of-malta-153811917x-9781538119174.html. 
  14. ↑ Jens Rudolf, Uwe (2018). "Historical Dictionary of Malta" (in en). Rowman & Littlefield. xxxviii. https://dokumen.pub/historical-dictionary-of-malta-153811917x-9781538119174.html. 
  15. ↑ 15.0 15.1 15.2 15.3 15.4 15.5 15.6 "Our history - Central Bank of Malta". https://www.centralbankmalta.org/our-history. 
  16. ↑ Rudolf, Uwe Jens (2018-11-10) (in en). Historical Dictionary of Malta. Rowman & Littlefield. pp. xxxiii, 36. ISBN 978-1-5381-1918-1. https://books.google.com/books?id=lmZwDwAAQBAJ. 
  17. ↑ Ripard, Joanna (2010-01-24). "APS Bank embarks on ethical international finance dimension" (in en-gb). https://timesofmalta.com/article/aps-bank-embarks-on-ethical-international-finance-dimension.291014. 
  18. ↑ "BOV rings the bell at the Malta Stock Exchange" (in en-US). 2025-01-24. https://maltachamber.org.mt/bov-rings-the-bell-at-the-malta-stock-exchange/. 
  19. ↑ "Curmi & Partners - HSBC Bank Malta plc : Company Profile". https://www.curmiandpartners.com/en/hsbc-bank-malta-plc-company-profile-. 
  20. ↑ "Curmi & Partners - Lombard Bank : Capital History". https://www.curmiandpartners.com/en/lombard-bank-capital-history. 
  21. ↑ "FIMBank - Trade Finance Solutions". https://www.fimbank.com/en/about-the-group. 
  22. ↑ Jens Rudolf, Uwe (2018). "Historical Dictionary of Malta" (in en). Rowman & Littlefield. 109. https://dokumen.pub/historical-dictionary-of-malta-153811917x-9781538119174.html. 
  23. ↑ Jens Rudolf, Uwe (2018). "Historical Dictionary of Malta" (in en). Rowman & Littlefield. 110. https://dokumen.pub/historical-dictionary-of-malta-153811917x-9781538119174.html. 
  24. ↑ Jens Rudolf, Uwe (2018). "Historical Dictionary of Malta" (in en). Rowman & Littlefield. xlv. https://dokumen.pub/historical-dictionary-of-malta-153811917x-9781538119174.html. 
  25. ↑ Jens Rudolf, Uwe (2018). "Historical Dictionary of Malta" (in en). Rowman & Littlefield. xlviii, 36. https://dokumen.pub/historical-dictionary-of-malta-153811917x-9781538119174.html. 
  26. ↑ Kohli, Anisha (2021-07-08). "On the decline since Panama Papers, Malta punished for dirty money reputation - ICIJ" (in en-US). https://www.icij.org/inside-icij/2021/07/on-the-decline-since-panama-papers-malta-punished-for-dirty-money-reputation/. 
  27. ↑ 27.0 27.1 Janyga, Mirko (2021-08-12). "Malta on the FATF's Grey List - Consequences for Obliged Entities according to AMLA". https://www.msg-compliance.de/en/blog/malta-on-fatf-grey-list-consequences-for-obliged-entities-according-to-amla. 
  28. ↑ 28.0 28.1 Hawser, Anita (2022-01-15). "Combatting money-laundering in the EU" (in en-US). https://www.maltabankers.org/combatting-money-laundering-in-the-eu/. 
  29. ↑ Jens Rudolf, Uwe (2018). "Historical Dictionary of Malta" (in en). Rowman & Littlefield. liv. https://dokumen.pub/historical-dictionary-of-malta-153811917x-9781538119174.html. 
  30. ↑ "Public Notice Concerning Satabank plc" (in en-US). https://www.mfsa.mt/publication/public-notice-concerning-satabank-plc-2/. 
  31. ↑ "SATABANK plc (Malta) - Bank Profile" (in en). https://thebanks.eu/banks/18431. 
  32. ↑ Csúri, András (2020-01-11). "MONEYVAL: Fifth Round Evaluation Report on Malta" (in en). https://eucrim.eu/news/moneyval-fifth-round-evaluation-report-malta/. 
  33. ↑ Agius, Monique (2020-06-25). "Moneyval grey list: "A meteorite rapidly moving towards us" - Galdes" (in en-US). https://newsbook.com.mt/en/moneyval-grey-list-a-meteorite-rapidly-moving-towards-us-galdes/. 
  34. ↑ "Malta's progress in strengthening measures to tackle money laundering and terrorist financing". https://www.fatf-gafi.org/en/publications/Mutualevaluations/Fur-malta-2021.html. 
  35. ↑ Calleja Zammit, Claire Marie (2021-06-04). "The long and short of it: Moneyval’s report on Malta" (in en). https://www.pkfmalta.com/news/network-news/the-long-and-short-of-it-moneyval-s-report-on-malta/. 
  36. ↑ "Annual Report 2021". https://fiaumalta.org/app/uploads/2024/02/Annual-Report-2021.pdf. 
  37. ↑ Vella, Matthew (2021-06-23). "[WATCH Malta first EU state to get FATF greylisting, PN: ‘a national punishment’"] (in en). https://www.maltatoday.com.mt/news/national/110466/malta_first_eu_member_state_to_get_fatf_greylisting. 
  38. ↑ "FATF highlights the three action points Malta needs to fulfill to move off grey list". The Malta Independent. 2021-06-25. https://www.independent.com.mt/articles/2021-06-25/local-news/FATF-highlights-the-three-action-points-Malta-needs-to-fulfill-to-move-off-grey-list-6736234688. 
  39. ↑ Bonnici, Julian (2022-06-18). "Explained: How Malta Managed To Get Off The Grey List In A Year" (in en-GB). https://lovinmalta.com/opinion/analysis/explained-how-malta-managed-to-get-off-the-grey-list-in-a-year/. 
  40. ↑ Galea, Jean (2021-07-01). "Malta’s FATF Grey List Saga: What Happened and the Aftermath" (in en-US). https://jeangalea.com/malta-fatf-grey-list/. 
  41. ↑ Speigner, Melissa (2022-06-17). "Malta Removed From FATF Grey List" (in en-GB). https://corriericilia.com/malta-removed-from-fatf-grey-list. 
  42. ↑ "APS Bank rings the bell at the Malta Stock Exchange". https://www.apsbank.com.mt/news/aps-bank-rings-the-bell-at-the-malta-stock-exchange/. 
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