The competitiveness of commercial banks in Malta

Abstract

The last few developments in the Maltese economy have been a catalyst in many of its constituent sectors. This includes the banking sector where relevant steps towards a more integrated and competitive environment should have been adopted due to the entrance of Malta in the European Union. The European Union signifies an imperative turning point in the overall functioning of the local financial sector where banks become detached from the protectionist measures of the government and thus have to focus on internal strengths to boost competition, both domestically and internationally. In tum, this dissertation compares the relative performance of the two major banks in Malta, HSBC Bank p.l.c. and BOV p.l.c., both when still forming part of government's strategic plan to use the latter as means to control unemployment and when these were free from government interference. Therefore, their respective ability to adapt over time is being assessed.