Changes in the Maltese banking industry

Abstract

Following the persisting changes within the Maltese banking industry, local banks are encountering higher demands and challenges. Therefore, the purpose of this dissertation is to explore the contemporary changes – mainly in competition, branch networks, and the low interest rate environment – and how the local major banks deal with such challenges. To reach this objective, the researcher relied mostly on primary data. In fact, the information was acquired through interviews with four local major banks. Subsequently, the researcher analysed, discussed, and compared the outcomes of the interviews. Moreover, secondary data was also used, largely through published statistics, journal articles and other publications. The results show that branches are being closed down to diminish auxiliary costs, and to confront changes within the upcoming generations. In addition, the rising demand for digital banking has resulted in a flood of innovative technologies that are revolutionising the competition within the local banking industry. On the other hand, the low interest rate environment forced banks to reconsider their revenue streams.