The changes which were undertaken by the Maltese banking sector due to the 2007-08 Financial Crisis

Abstract

The magnitude of the 2007-8 financial crisis has been strong enough that the economy was quite gradual in its recovery state making it attentive in taking the necessarily precautions not to experience it again. The dissertation seek to analyse the impacts experienced by Maltese banks together with the strategic changes implemented by banks to reduce the chance of something similar happening again. At this point, the usefulness of this study originates by outlining the strategic concepts that were changed up to the present date rather than relying around the boom of the financial crisis. The results of this analysis were gathered through in-depth interview with the major banks in Malta mainly, Bank of Valletta (BOV), HSBC Bank, APS Bank, Banif Bank and Lombard Bank. The key findings show how Malta is a small and open economy which aims towards a conservative strategy. Its conservatism made its impacts less harsh and this mentality is being adopted by foreign economies. However, since customer trust was still effected by the more sever situations in other economies, banks still had to revise the way their business was being carried out. Therefore banks are not just recovering customers’ and investors’ trust but also protecting themselves from any business connection with foreign economies.