Volksbank appoints Maltese executive director
Joseph Bugelli will today be appointed an executive director of Volksbank Malta, the first time a Maltese national holds such a position with Volksbank, which is a wholly-owned subsidiary of Österreichische Volksbanken AG, Vienna. VB Malta was...
Joseph Bugelli will today be appointed an executive director of Volksbank Malta, the first time a Maltese national holds such a position with Volksbank, which is a wholly-owned subsidiary of Österreichische Volksbanken AG, Vienna.
VB Malta was established in 1995 as an offshore bank and converted to a fully licensed commercial bank in November 2002. The bank started local business operations soon after managing director Herbert Skok took over the management of VB Malta in 2003. Since then Volksbank Malta has grown to 37 employees.
"VB Malta increased its capacity to lend and also to take deposits from Maltese and foreign customers; we offer all retail banking services to our clients. In order to support the bank's expansion in Malta, the shareholders thought it would be appropriate to strengthen its corporate governance by appointing an executive director. Since Volksbank intends to continue to grow its local business, it was decided that logically the fifth director has to be a Maltese banker, whose main competence is risk management." Mr Bugelli told The Times Business.
Mr Buigelli's core responsibility is risk management, which covers the bank's operations and all areas in which it is assuming risk, not only when it lends money but also from whom to take money.
"We identify whatever risks are involved and we do our best to measure such risk and to measure how it possibly could hit us if things are not going according to plan. We are always looking at the safe side of things to protect our customers and also the bank" he said.
Apart from risk management function, Mr Bugelli also goes into depth on each credit application that the bank receives. "Our size permits us to review every transaction in detail, so I am also a risk analyst. This applies as well for any treasury business which we might decide to do with our customers. On the operational side, we have to be prepared at all times to continue our business even at times of sustained crisis."
Mr Bugelli explains that all Volksbank Malta's business segments - corporate and personal banking, home loans, trade finance, investment services and foreign exchange - offer potential for growth.
"The potential for growth is in all sectors in the local market. We are doing well in international business; we are established in taking on new loans and deposits from Austria, central and eastern Europe and other markets. In the local market we offer loans and deposits both to personal and commercial entities with values ranging from small to medium and large. We are not pursuing the mass market which is already very well serviced by the two big Maltese banks.
"We have developed our niche by building personal contacts with corporate and private clients. We have a number of customers who have taken home loans or placed their liquidity with Volksbank. Also we have a number of German, Swiss and Austrian clients. Our size permits us to offer a personalised service which gives the Bank and the customers an advantage over our competitors," he said.
Mr. Bugelli adds: "We are doing our best to increase local business. I think that we have done very well over the past years and will do even better in the future."
Mr. Bugelli says that Malta's European Union membership created new opportunities for the financial sector and also for VB Malta.
"A number of Maltese customers took the opportunity to invest abroad, especially in the central eastern European area. Many people who go to these countries come across the Volksbank brand - the Volksbank Group has more than 1,200 outlets in Austria and central and eastern European countries, with almost 9,000 employees. We support our customers with loans of any required volumes to be used to invest in property or land in Czech Republic, Slovakia, Hungary, Romania, Ukraine, all parts of former Yugoslavia and more.
"Many of our customers like to invest in these countries to buy a holiday-home, second home or to buy land for development. Maltese are always looking for new markets and in these countries they see a repetition of the investment opportunities that existed in Malta in the 1980s."
Mr Bugelli says the introduction of the euro in Malta was also of great benefit to the banking sector. "It removed a lot of unnecessary risk and created a lot of opportunities. It is now possible for Maltese banks to borrow from the European Central Bank and to deal with all other banks in the eurozone," he said.
ÖVAG is the fourth largest banking group in Austria and has almost 9,000 employees, in Austria and foreign subsidiaries.
Mr Bugelli said that even severe global crises create opportunities for the stronger banks with a good international credit rating. "The Volksbank group is well prepared to take up this challenge," he said.
VB Malta was established in 1995 as an offshore bank and converted to a fully licensed commercial bank in November 2002. The bank started local business operations soon after managing director Herbert Skok took over the management of VB Malta in 2003. Since then Volksbank Malta has grown to 37 employees.
"VB Malta increased its capacity to lend and also to take deposits from Maltese and foreign customers; we offer all retail banking services to our clients. In order to support the bank's expansion in Malta, the shareholders thought it would be appropriate to strengthen its corporate governance by appointing an executive director. Since Volksbank intends to continue to grow its local business, it was decided that logically the fifth director has to be a Maltese banker, whose main competence is risk management." Mr Bugelli told The Times Business.
Mr Buigelli's core responsibility is risk management, which covers the bank's operations and all areas in which it is assuming risk, not only when it lends money but also from whom to take money.
"We identify whatever risks are involved and we do our best to measure such risk and to measure how it possibly could hit us if things are not going according to plan. We are always looking at the safe side of things to protect our customers and also the bank" he said.
Apart from risk management function, Mr Bugelli also goes into depth on each credit application that the bank receives. "Our size permits us to review every transaction in detail, so I am also a risk analyst. This applies as well for any treasury business which we might decide to do with our customers. On the operational side, we have to be prepared at all times to continue our business even at times of sustained crisis."
Mr Bugelli explains that all Volksbank Malta's business segments - corporate and personal banking, home loans, trade finance, investment services and foreign exchange - offer potential for growth.
"The potential for growth is in all sectors in the local market. We are doing well in international business; we are established in taking on new loans and deposits from Austria, central and eastern Europe and other markets. In the local market we offer loans and deposits both to personal and commercial entities with values ranging from small to medium and large. We are not pursuing the mass market which is already very well serviced by the two big Maltese banks.
"We have developed our niche by building personal contacts with corporate and private clients. We have a number of customers who have taken home loans or placed their liquidity with Volksbank. Also we have a number of German, Swiss and Austrian clients. Our size permits us to offer a personalised service which gives the Bank and the customers an advantage over our competitors," he said.
Mr. Bugelli adds: "We are doing our best to increase local business. I think that we have done very well over the past years and will do even better in the future."
Mr. Bugelli says that Malta's European Union membership created new opportunities for the financial sector and also for VB Malta.
"A number of Maltese customers took the opportunity to invest abroad, especially in the central eastern European area. Many people who go to these countries come across the Volksbank brand - the Volksbank Group has more than 1,200 outlets in Austria and central and eastern European countries, with almost 9,000 employees. We support our customers with loans of any required volumes to be used to invest in property or land in Czech Republic, Slovakia, Hungary, Romania, Ukraine, all parts of former Yugoslavia and more.
"Many of our customers like to invest in these countries to buy a holiday-home, second home or to buy land for development. Maltese are always looking for new markets and in these countries they see a repetition of the investment opportunities that existed in Malta in the 1980s."
Mr Bugelli says the introduction of the euro in Malta was also of great benefit to the banking sector. "It removed a lot of unnecessary risk and created a lot of opportunities. It is now possible for Maltese banks to borrow from the European Central Bank and to deal with all other banks in the eurozone," he said.
ÖVAG is the fourth largest banking group in Austria and has almost 9,000 employees, in Austria and foreign subsidiaries.
Mr Bugelli said that even severe global crises create opportunities for the stronger banks with a good international credit rating. "The Volksbank group is well prepared to take up this challenge," he said.