Distribution policies of the commercial banks in Malta

Abstract

The scope of this dissertation is to establish if the Commercial Banks in Malta had, since their incorporation, an established dividend distribution policy or otherwise. Reference is only made to the three major Banks: Bank of Valletta Limited, Mid-Med Bank Limited and Lombard Bank (Malta) Limited. Chapter 1 gives an introduction and an overview of the structure of the dissertation. Chapter 2 deals with prevailing theories of distribution policies substantiated by reference to arguments by various authors on the subject. It also explains different forms and types of distribution policies and factors which have an impact on the issue. Chapters 3 to 5 analyse each Bank's distribution policy in detail. Each chapter starts with a brief history of the Bank, followed by the shareholding structure. The general distribution patterns are presented, and various factors, common to each Bank, are examined to discover possible relationships which may have existed, and which affect the value of shareholders' wealth. Data obtained from the Banks' Annual Reports and other sources are presented in tabular and graphical form. Chapter 6 attempts to draw conclusions regarding the Banks' past and present distribution policies and to gauge the probable effect on such policies of relevant issues which may arise in the future up to the turn of the century.