Bank of Valletta has dropped a fee it charged corporate and other non-personal customers that held high balances in their accounts. 

The fee was applied to any non-personal customers with a net positive balance of at least €1.5 million and stood at 0.5% daily. 

It had been introduced as a result of the negative interest rate scenario that was prevalent till the end of last month.

It was dropped from the bank’s tariff of charges on August 1, weeks after the European Central Bank announced that it would be raising interest rates for the first time in years. 

Albert Frendo, Chief Business Banking Officer, explained that the bank was following and adapting to the evolving environment, ensuring that changes in market dynamics were reflected in its pricing and business strategy.

"Concurrently, we are ensuring that the level of corporate deposits is sustainable and within the required parameters as reflected in our asset and liability management. Within such perspective, we make sure that any benefits resulting from market changes are immediately accrued to the customer, whilst effectively managing negative changes as much as possible.”

The bank said its decision dovetails with other efforts being made in support of Maltese entrepreneurs.

“Within an ensuing inflationary period, the bank continues to ensure that it remains the key provider of commercial funding, underpinned by strong lending fundamentals and effective feasibility assessments to continue supporting sustainable economic growth in the various economic sectors that are driving the Maltese economy,” concluded Mr Frendo.