The banks’ “significant” contribution to the economy was evident in a recent study on the access of SMEs to financing, the Malta Bankers’ Association noted.

“The development and growth of the economy largely underpins the banks’ own growth prospects and profitability,” said the association’s secretary general, James Bonello.

A Central Bank of Malta survey on access to finance found that 87 per cent of those seeking loan finance and 75 per cent of applicants for overdrafts “got everything” or “got most of it”. Only eight per cent of applications were rejected, the study said.

Prime Minister Joseph Muscat recently criticised lending practices, saying that the economy was growing “despite” the banks, which he said were making people’s and investors’ lives difficult.

According to the bankers’ association, the combined assets of the seven core domestic banks were €19.8 billion at the end of 2015, up from €19.1 billion in 2014.

A Central Bank of Malta survey found 87% seeking loan finance and 75% of overdraft applicants ‘got everything’ or ‘got most of it’

The total assets of the association’s 28 member banks was €45.1 billion in 2015, the association said, noting customers’ deposits with the core banks last year grew by seven per cent, reaching €16.5 billion. The deposits of all the banks totalled €22.8 billion.

“This trend clearly reflects the public’s trust and confidence in the banking system. Indeed, in its Global Competitiveness Report for 2015-2016, the World Economic Forum ranked Malta 15th of 140 countries surveyed for the soundness of its banking system,” Mr Bonello noted.

The core domestic banks provided credit facilities to households and businesses amounting to €9.4 billion while lending to individuals for house purchases reached €3.9 billion.

The number of full-time bank employees last year increased to about 4,400, with a total payroll reaching €160 million. Net dividends paid to resident shareholders were €49 million, and taxation on profit on ordinary activities added up to €82 million.