An analysis of the Malta Development Bank

Abstract

Overview: SMES have been facing the problem of financing gap for many years. The financing gap is the difference between the funds that the SME needs and the funds that the SME has. However, the government together with the European Commission, has issued several schemes to cater for this problem. The Financing gap to some extent covered with these schemes, however these are not enough. Therefore, the Malta Development Bank was created. This dissertation assess how the Malta Development Bank will help the SMEs and what its functions will be. Aim: The main aim of this dissertation was to analyse why the MDB was created. The study analyses the different challenges that were faced by the SMEs and also the problems that banks encounter in the market. The dissertation also covers the functions of the MDB. Objective: One of the main aims of the researcher was to conduct face to face interviews with a local bank and with one of the government ministries to gain detailed information about the Malta Development Bank. Conclusion: The aim of the Malta Development Bank was to offer new financing products aimed at the sector for SMEs as well as for the infrastructural sector. However, there is little knowledge about this bank both amongst other banks and the general public.