Shifting sands in local banking

Abstract

International banking is passing through a revolutionary process and we are everyday hearing about deregulation, take-overs, home-banking, etc. This wind of change has been brought about partly by the stiff competition encountered by banks from many large or multinational business organisations or financial institutions. In Malta our market structure is unlikely to be caught in this whirlwind but undoubtedly a strong breeze is being felt. Offshore banking is on our thresholds although this does not seem to cause apprehension of an invasion into the commercial banks' market segment. They are however moving very strongly towards enhancing their image, improving efficiency or enhancing the range of products they sell. The traditional role of commercial banks was the raising of funds and the employment of these funds through lending on loan or overdraft. Time has passed and the quill has been substituted by mini-computers and word processors. Likewise the services have been enhanced and new products have mushroomed. Locally we have seen some services retaining the same features but in others the approach and technique have shown radical changes. [excerpt]