What has been the impact of EU membership on the growth and development of the banking sector?

Abstract

Since Malta became a member of the European Union, it experienced rapid expansions in a number of different sectors of its economy. One sector which has experienced significant growth is without any doubt the Maltese banking sector. This dissertation starts by analysing the history of the Maltese banking sector, the sector before Malta joined the European Union and the sector today. The focus of the dissertation then shifts to the main regulatory changes that Malta had to implement to comply with EU legislation before and after it became a member of the European Union. Apart from the regulatory changes, this dissertation also analyses the main factors which have helped make Malta a popular destination for the undertaking of financial activities. Its main focus of analysis is a questionnaire addressed to the main banks in the Maltese Islands. The future of the banking sector is also analysed as it became a delicate discussion topic around March 2013 in the light of the Cypriot banking crisis. The thesis identifies those facts which show that the Maltese banking system is stable, sound and robust. The EU Commission's new banking rules which could possibly impact on the Maltese banking sector in coming years along with possible further extensions in the financial sector are also analysed in this dissertation.