Issue link: https://maltatoday.uberflip.com/i/1526919
4 maltatoday | SUNDAY • 22 SEPTEMBER 2024 NEWS NICOLE MEILAK nmeilak@mediatoday.com.mt IT was the summer of 1999 when the Maltese government sold its 67.1% stake in Mid-Med Bank, to a member of the HSBC group for roughly Lm91 million – around €200 million at the time. The deal had been brokered by then-finance minister John Dalli, although opponents to the deal were highly critical of the move. The deal, according to Dalli, was supposed to place Malta on the international financial map and bring a quantum leap in the banking sector in Malta. 25 years later, the bank could be heading for an exit. On 11 September, HSBC an- nounced that it will carry out a strategic review of its sharehold- ing in its Malta subsidiary. This review could take months, but if there is any truth in the specula- tion that finally forced through a slew of company announce- ments, it is the small Church- owned bank APS that is gunning for the buy. Apart from concerns on APS's financial firepower to buy HSBC Malta, the question on people's minds is whether it is an acquisi- tion that, in leaving Malta with- out an international bank and its correspondent banking muscle, would not be in the country's strategic interest. Philip von Brockdorff, a pro- fessor of economics, feels that it is in Malta's interest to attract a foreign bank of international re- pute, particularly due to the frag- mented nature of Europe's bank- ing sector. "The preferred option is to attract a reputable foreign bank, including second-tier banks, but the problem is the size of the market. It is just too small to generate interest, and with the regulatory framework being what it is, that interest might not ma- terialise into concrete offers," he told MaltaToday. He warned that, in finding a suitor acceptable to HSBC, one should take a regulatory and economic perspective. "[This] is especially important given the economy's dependence on sec- tors such as tourism, gaming, construction and real estate. Such sectors may not always be the areas in which established foreign banks have an interest." MaltaToday also asked former prime minister Alfred Sant for his views on the matter. Back in 1999, Sant was heavily critical of Mid-Med/HSBC deal, particular- ly due to the price it was sold for. Years later, he doesn't quite see what the benefits of HSBC's pres- ence in Malta have been. "Due to its size and its structure the Maltese economy is cocooned from the international financial system, with most government debt funded locally which makes it manageable, no matter how it grows. As for private sector fi- nance, I fail to see how the HSBC presence has really been of bene- fit as compared in the past to the profile of Mid-Med vis-a-vis the problems of correspondent bank- ing over the last few years. "So no, even if this is a hereti- cal view, I'm not too concerned if there's no (big) foreign bank operating out of Malta, provid- ed that there remains at least a well-regulated and stable 'big' banking duopoly with other smaller banks on the side." Like Von Brockdorff, Sant agrees that the local market is too small to attract the interest of big international banks. "Any bank that is interested to come here will do so to achieve some short- term, sharp gains that then soon come to be considered marginal – as has been really the HSBC ex- perience in Malta." CAREER OPPORTUNITIES Submit your application COURT CLERKS (MALTA COURTS) Aġenzija għas-Servizzi tal-Qrati Prospective candidates must have an 'O' Level standard of education and must be in possession of ECDL/ICDL passes in modules 2, 3 and 4. The salary for the post of Court Clerk is pegged to the Court Services Agency Grade 7. At 2024 rates, this is equivalent to €15,487 per annum, rising by annual increments of €350 up to a maximum of €18,637. Newly engaged Court Clerks start from Step 3 of this Grade, i.e. €16,187 per annum. This full-time post is on an indefinite basis and is subject to a probationary period of six months. Candidates must also be proficient in the Maltese and English Languages. Candidates are to submit their letter of application, their qualifications and experience in a Europass Curriculum Vitae Format, a copy of their relevant scanned certificates and a valid Police Conduct Certificate by e-mail on recruitment.courts@courtservices.mt. Further information and a comprehensive description of duties can be obtained by contacting the Court Services Agency on recruitment.courts@courtservices.mt. Applications will be received till Friday 4th October 2024 at 13:00 hrs. Eligibility JobsPlus Permit No. 337/2021 Does Malta need an international bank? The answer might not be so clear Philip von Brockdorff Alfred Sant