The banking sector in Malta has been buffeted by many storms over the past few years – but everything now seems to be coming to a head. The banks in Malta are financially among the most sound in Europe but from a shareholding point of view, rarely has there been such upheaval on the cards, much of it fall out from what happened in the past.

HSBC Malta’s parent company is hoping to boost its languishing share price by announcing thousands of job cuts, and is threatening to move out of London. Could such dramatic changes leave Malta untouched? Although it is making a profit here, that is no longer enough. We seem to forget that corporates have no sentimentality and if they can get a better return elsewhere, they will move their capital without a second glance. Rumours that HSBC Malta would be sold if the right buyer were found have been doing the rounds for months; what if it were now actively looking for a buyer?

Two other banks are on the market because of the sins of their parents: Banif because of its majority Portuguese shareholder’s bailout and Lombard because of its majority Cypriot shareholder’s bailout.

Banif has until 2017 to sell 72 per cent of its shares, and it has been busy putting on its best face, set to announce much healthier profits – five times those of 2013.

Lombard, in the meantime, is waiting to see what Cyprus Popular Bank will do with the 49 per cent shareholding is has held since 2007. A new special administrator was appointed in April to sell the overseas interests while it was announced last week that Investment Bank of Greece will help with the evaluation and possible sale.

But it is not clear whether there have been any serious nibbles for either Banif or Lombard (which has a 69 per cent stake in Maltapost that will also need to be dealt with). If no one comes forward and time runs out, what are the options?

There are other changes afoot, reflecting the way in which banks’ operations have matured since the heady days when new banks were appearing on every corner, interest rates became more competitive than discount supermarkets, and everyone talked in hushed voices about ‘high net worth individuals’.

The MFSA had to slap a few wrists in quiet and the Governor of the Central Bank, Josef Bonnici, did the same – a bit more openly. Banks had to reposition themselves – and seriously rethink their business models.

The impositions did not stop there: banks could no longer give the dividends they wanted but had to get MFSA approval first. The European Central Bank made both Bank of Valletta and HSBC add millions in provisioning.

Yesterday, the Central Bank of Malta reclassified Mediterranean Bank as a core domestic bank, making it one of the systemically important banks – with all the responsibilities that implies. In the same review, Credit Europe was reclassified as an international bank instead of a non-core domestic bank.

The appearance of foreign shareholders really shook up the local banking sector, upping the standards, bringing in competition to improve consumers’ options, and improving career options.

Would their departure be as beneficial? The lack of ardent suitors would indicate that there are many more changes to come.