The development of a secondary mortgage market in Malta : analysis and conclusions

Abstract

The following thesis will deal with the analysis of the developments in the mortgage finance system while it seeks to establish a criterion to the establishment and maintenance of a successful Secondary Mortgage Market. Special reference to Malta's situation will be made to come to conclusions as to whether it is viable to engage in this secondary market operation. The thesis lists a number of criterion on which to base the assessment of a country in the development of the SMM. What Malta lacks are some details concerning these objectives, as well as having its own reasons, like excessive liquidity, which in their own ways would not make the SMM viable for the time being. Discussion takes place of what should be Malta's next move towards financial innovation of the sort. Should Malta wait until things have to actually happen or should it take a pro-active step and start thinking about futuristic developments, maybe with the help of other European banks?