The banking sector in Malta continues to be sound and remains resilient despite the "developments" faced by Nemea Bank plc, the Central Bank of Malta said this afternoon.

The reaction came a day after the Malta Financial Services Authority told the European Central Bank that Nemea Bank should have its banking license withdrawn.

The MFSA said that discussions with the bank's shareholders to address "regulatory shortcomings" had failed to register any tangible progress.

Nemea Bank plc is a small international bank which was authorised to operate as a credit institution in September 2008.

The online only bank has been gradually tapping the retail deposit market since 2011 with total assets currently estimated at less than €60 million.

The Central Bank said Nemea has minimal links with the domestic economy, and in the eventuality that the bank's licence is withdrawn such an event would not have a material impact on the Maltese financial system.

"The decisive and timely measures taken by the regulator demonstrate the determination of the competent authorities to protect depositors and uphold good governance in financial institutions to safeguard the integrity and reputation of Malta's financial system."

 

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