An analysis of the non-financial and financial fundamentals of Maltese groups of companies in bank lending : the mutual perspective

Abstract

Purpose : This study analyses the non-financial and financial fundamentals of Maltese groups of companies in bank lending, and has identified ways of how the current group-bank credit relationship may be enhanced to allow for a more effective and efficient flow of credit for the mutual benefit of Maltese groups and companies and the major Maltese banks. The study identified the current credit-risk assessment process as performed by the same banks in arriving at their lending decision subsequent to financing requests presented by the said groups and has also evaluated, within this context, the attitudes and perceptions of both parties in order to identify key ensuing concerns in relation to such financing requests.