Financial experts in regulatory roles in the local industry have spoken to this website on condition of anonymity and said that the local regulators (MFSA) are highly unlikely to accept any bid for HSBC Malta by private investors.
Times of Malta broke the news earlier today that a group of private investors have submitted a bid for HSBC Malta. According to Times of Malta the consortium of local investors include Virtu Ferries, Gasan Group and Azzopardi Fisheries.
Owning a bank requires a banking license, which is granted only after very rigorous due diligence on the applicant. The regulator will be wary of commercial conflicts of interest, reputational risks stemming from the applicant’s history and political connections, and any lack of experience in owning or operating a bank.
HSBC Malta is considered as a strategic and major bank to the economy and rigorous standards will be applied on any applicant, and the government preferred HSBC Malta to be sold to another major and international bank as opposed to selling it to local banks.
APS Bank and OTP Bank have submitted bids for HSBC Malta.
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