The minimum paid up capital for a credit institution is Euro 5 million and the adequacy of own funds is measured on a risk-weighted asset basis. The Banking Act 1994 recognises the importance of measuring and monitoring concentration of risk through establishing and limiting large exposures in relation to a bank’s own funds.
In recent years a number of foreign credit institutions have established a presence in Malta, the majority of which operate in specialized niche markets in the banking sector. Malta has proven to be an ideal jurisdiction in this regard, due to its well-regulated banking sector, skilled multi-lingual workforce, state-of-the-art telecommunications infrastructure, comparatively low running costs and labour.
Advance revenue rulings may be obtained as to the tax treatment of transactions involving financial instruments and international business. These rulings apply for 5 years and may be renewed for a further 5 years. Such rulings also survive any change in the relevant legislation for a maximum period of 2 years.
Various fiscal incentives are available to Credit Institutions upon particular criteria being satisfied.
The firm advises and assists clients in the banking and finance sectors both in the setting up process and on an ongoing basis thereafter.