The European Commission has formally launched infringement procedures against Malta over its "incorrect transposition" of the Deposit Guarantee Scheme Directive. 

The procedures were kicked off through letters of formal notice sent to Malta on Thursday. Similar letters, which signal the first step in infringement procedures, were also sent to Croatia and Hungary. 

According to a statement by the Commission, the directive is part of the regulatory framework that was put in place to create "a safer and sounder financial sector in the wake of the 2008 financial crisis".

Under EU rules, deposit guarantee schemes protect depositors' savings by guaranteeing deposits of up to €100,000 and help prevent the mass withdrawal of deposits in the case of bank failure, which can create financial instability.

The deadline for the transposition of these rules into national law was July 3, 2015, the Commission said. 

Despite the three countries claiming to have completely transposed the directive, the Commission has found that some provisions are "not correctly transposed into national law". 

In Malta's case, the incorrect transposition concerns the provisions related to the payment commitments and alternative funding arrangements, the Commission said. 

Without a satisfactory response from these member states within two months, the Commission may decide to address a reasoned opinion.

The so-called reasoned opinion is a formal request to comply with EU law. It explains why the Commission considers that a country is breaching EU law.