Lately, there has been unravelling, in Italy, the financial debacle of four major provincial banks, conspicuous among which were Banca delle Marche and Banca Etruria, both more extensive by far than Bank of Valletta.

They were found guilty of the mismanagement of clients’ funds and deposits. They tried to buffer the haemorrhage by issuing almost a billion of subordinated bonds, with unspeakable personal tragedies. This led to a serious government crisis.

Which brings us to the actual situation in Malta. Is the Central Bank’s financial control mechanism monitoring our banks’ manipulation of depositors’ investments?

Lately, Bank of Valletta was reported in the press for extending loans to shore up national projects. This, apart from its ill-advised frivolous policy of emoluments, notably in end-of-service payouts. Has the Central Bank monitored the issue of €75 million in subordinated bonds by Bank of Valletta? There was talk that pensioners signed bond papers often without reading the documents.