MDB in bid to bolster dialogue and step up collaboration in commercial banking sector

As part of its efforts towards enhancing access to finance in Malta, the MDB brought together key stakeholders from the commercial banking sector to foster strategic dialogue and deliberate on the collaboration needed towards this objective.

The meeting, held at the MDB’s premises in Floriana and led by its Chairman Leo Brincat and CEO Paul V. Azzopardi, underscored the significance of collective efforts in fostering a fairer transition towards green and digital initiatives.

Acknowledging the pressing need for sustainable economic development in Malta, Brincat emphasised the crucial role of banks as financiers of the transition to green and digital economies. “The Pandemic experience, when nine local banks joined forces with the MDB to implement the COVID-19 Guarantee Scheme, is a tangible example of the potential that such collaboration can reserve for the Maltese economy, where half a billion euro in liquidity was mobilised.”

Bank representatives acknowledged that the MDB played an enabling role to support businesses, working with commercial banks rather than competing with them.

The discussions centred on streamlining lending processes while ensuring prudence, offering tailored financial products, making optimal use of guarantees and risk-sharing instruments, and leveraging partnerships to mitigate risks associated with sustainable investments.

Brincat reiterated MDB's unwavering commitment to serve as a catalyst and gateway for transformative change, emphasising the Bank's role in providing accessible financing solutions to promote inclusive growth and sustainability.

He stressed the importance of ensuring that financial incentives are in tune with the national objectives, in order to support the country’s competitiveness.

Brincat also commended the proactive engagement of commercial banks in recognising the evolving landscape of sustainable finance, and their willingness to collaborate in advancing shared objectives. He emphasised the need for sustained dialogue and collective action to address the challenges and capitalise on the opportunities presented by the green and digital transition.

Brincat reiterated that “as Malta continues its journey towards a more sustainable and technology-driven future, the collaborative efforts between the MDB and commercial banks are poised to play a pivotal role in driving positive change and ensuring a fairer transition for all.”