Swiss banking practices wrapped around Malta's up-to-date financial services regime, aimed at the top end of the market, is the offering of a start-up, Mediterranean Bank, which was officially opened last Friday week.
Chief executive officer Frédéric Villa told The Sunday Times that the original idea germinated in 2002, when Stefano Burgyan, today a member of the board of directors, identified a niche in the financial services market in Malta.
"Mediterranean Bank aims to create added value in the financial services sector," Mr Villa said. "The service offered is of a very high level, bringing over 15 years of experience in prime Swiss banks to Malta."
The bank's location is crucial, not only in the context of Malta's geographical position in the centre of the Mediterranean but also in terms of the choice of its headquarters, located on St Barbara Bastion in Valletta, with fantastic views of Grand Harbour. Its premises, which are rented from the Marchese Vincenzo Bugeja Trust, have undergone a complete restoration.
Professional restorers were brought to Malta from Italy to work on the ornate Maltese stone sculptured façade and the fabulous murals that decorate the former residence of the Maltese philanthropist. No expense was spared to furnish the offices to the highest levels, and the building has been restructured internally to ensure the utmost privacy for clients, who will only make contact with a minimal amount of staff.
"This building is our visiting card," Mr Villa affirmed. "We had a very precise idea of the very high standard we were after in the building."
The bank's focus on wealth management ensures that its business model is very clear. "The word 'wealth' is not understood fully," Mr Villa said. "It is important for us to get to know our client personally, his company, liquid assets, hobbies, property and art portfolios - any kind of wealth - so that we can deliver advice in its globality."
The bank aims to build its business relationship with its clients over the long term and it then chooses the best partners specifically for the clients' needs. Its network of contacts refer customers from Europe, North and South Africa, the Middle East, and Eastern Europe - it believes in one-to-one contact and not advertising.
"Malta has had these connections for years. We believe that Malta in 10-15 years' time will be at the level of the financial market leaders in the field, like Luxembourg, London and Switzerland. Our target is to be part of this."
The bank's clients will be willing to relocate their funds to Malta, where the country has everything in place: regulation; a market with staff with a high level of education; political stability; and a beautiful location. "We feel we are bringing something more to the Malta product," Mr Villa added.
Mediterranean Bank follows a rigorous corporate governance code. The owners are people from the financial sector and three independent directors, including the chairman, all specialised in their field. The Bianchi Group has a 20 per cent shareholding.
"Our chairman, Dr Giuseppe Parrello, is a former chairman of important listed companies in Italy." The other independent directors are Carlo Alberto Corte Rappis and Maurizio Rivalta, with Andrea Bonifacio, Stefano Burgyan, Francesco Doninelli, Roberto Franchini and Paolo Enrico Mondia also on the board.
Mr Villa is full of praise for the regulators, the MFSA, and thanked Professor Joseph Bannister and Karol Gabarretta for the constant and constructive dialogue.
Mr Villa is convinced that the opening of Mediterranean Bank is the right idea at the right moment and the right place to be.
"We really feel at home here," he said. "We are committed for this reason to train our staff and invest in training to get the best quality service for our clients.
"We use the most sophisticated technology to offer 'the best in each class' in terms of quality and highly motivated staff."
The bank so far has 13 members of staff, but intends to grow to a medium-sized bank within five years. "We want to pass on our knowhow to our staff, a highly qualified young team," Mr Villa said. "In five years' time they will take over and bring that knowhow to the Malta market.
"We are willing to see other credit institutions come to Malta to grow in our sector, which is lacking."
Mr Villa relocated to Malta in June, 2005, with his young family. The bank was granted a banking licence on July 14, 2005, and an investment services (Category 2) licence last November, extended this year to custody for funds. The bank is a licensed stockbroker and a member of the Malta Stock Exchange.
Claudio Tonolla is head of Wealth Management. Mr Tonolla has long experience with prime Swiss banks and has the sort of knowhow the bank wants to bring to Malta. The bank's IT and back offices services have been outsourced to B-Source in Lugano, Switzerland, which gives similar support to 15 other banks, giving it security for back-up and disaster recovery.
"This gives us the efficiency and flexibility of a medium-sized Swiss bank, with no limits of volumes or resources," Mr Villa said. The system has been operating since last October.
The bank owns a global advisory subsidiary, Mediterranean Global Advisory, based in Lugano, Switzerland, and headed by Loris Lovato, who has more than 15 years' experience in portfolio management. This enables the bank to offer prime quality services in private banking wealth management as its specialist core business.
Mediterranean Bank aim to be leaders in their sector in Malta. It is leveraging its size for maximum flexibility and will relocate certain elements, like its back office, to Malta as it grows.