Finance minister welcomes CrediaBank’s imminent HSBC takeover
Finding a buyer that ticked all the boxes was ‘a complex process,’ Clyde Caruana said
Finance Minister Clyde Caruana has welcomed the news of CrediaBank’s imminent takeover of HSBC, saying the move will “foster healthy competition” and strengthen Malta’s financial system.
Describing the news as “a significant development,” Caruana told Times of Malta that identifying a buyer that met both HSBC’s and Malta’s needs “had been a complex process”.
“The buyer’s membership in the Eurosystem is a crucial factor that reinforces the acquirer’s standing and credibility,” Caruana said, adding that this was further boosted by the Greek government’s minority stake in the bank.
The introduction of a new player in Malta’s banking scene will “contribute to foster healthy competition and further integrate Malta’s financial system within the European market,” Caruana said.
“The process will remain subject to rigorous regulatory oversight to safeguard stability, strengthen investor confidence, and secure long-term economic benefits,” the minister said.
Caruana’s comments come as CrediaBank confirmed that it had been selected as the preferred bidder, almost a year after HSBC first announce its intention to exit Malta.
Over the months, Caruana had expressed reservations over several of the initial prospective bidders.
In March, he told Times of Malta that Malta needs “more banking competition, not less,” seemingly pouring cold water on the interest declared by local bank APS. He also said Malta had to end up with a bank with “a good reputation,” in response to the interest of Hungarian bank OTP.
According to sources, the government had also expressed strong reservations over other bids, instead pushing for a takeover by an EU bank within the Eurozone.
Last week, Times of Malta revealed that a bid submitted by CrediaBank had gained the approval of both Maltese and Greek governments.
Despite CrediaBank being confirmed as the preferred bidder, it will be months before the takeover is formally completed, with the two parties ironing out details as they await the green-light from regulators.