The Greek bank CrediaBank, previously known as Attica Bank is set to buy HSBC Malta according to a Times of Malta Report. The Minister for Finances, Clyde Caruana has also given his approval. Other bidders included Bank of Georgia, Ardshinbank, and OTP. APS Bank also made a bid before withdrawing it.
I know nothing about CrediaBank so I feel I have no authority to comment. However, in principle it is much better for HSBC Malta to be acquired by a foreign and European bank rather than by a local bank. Those who are suggesting that HSBC Malta should be sold to a local bidder are ignoring the very serious reality that HSBC Malta is the only pro-business retail bank in Malta. HSBC Malta is the only local retail bank which genuinely adheres to a capitalist ethos which is driven by profitability in contrast to other banks who have very political and extremely risk-averse policies. This is why most local banks especially Bank of Vallettaand APS are not good business banks.
The core banking business in Malta is the real-estate market with banks focusing mostly on retail clients who buy their first home. In addition, local banks are more inclined to loan capital for property speculation instead of loaning capital for more productive and risky business ventures.
Malta needs a bank with a strongly pro-business and capitalist ethos, which is why the acquisition of HSBC Malta by a foreign European bank is an existential economic and financial necessity: and should not be treated as an issue driven by distorted national idealism
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