A high percentage of the Maltese are "financially excluded" as they do not hold a bank account of any sort, according to a new report issued by the European Commission.
Despite living in the age of internet banking, where transactions can be performed from the comfort of one's home, 21 per cent of the Maltese population do not even have a simple transaction account, commonly known as a current account.
The report, Financial Services Provision and Prevention of Financial Exclusion, was published yesterday in Brussels.
"Malta is considered to be in the medium to high level category of financial exclusion with a level of 21 per cent. This means that these people do not have a transaction account nor a savings account and no immediate access to revolving credit," the report says.
Still, Malta fares better than the majority of new EU member states.
According to the report, which gives an overview of the situation across the 27 EU member states, millions of Europeans are facing an increased risk of social exclusion through lack of access to basic financial services.
It reveals that two in 10 adults in EU-15 (old member states) and almost half in EU-10 (47 per cent) do not have a bank account while many more have no savings and lack access to credit.
The Commission said that although access to financial services has become a necessary condition for participating in economic and social life, yet, in most countries, many people encounter difficulties accessing or using appropriate financial services in the mainstream market.
"Financial exclusion is deeply linked to social exclusion. Poor people or socially excluded people are generally denied access to financial services and the lack of access to financial services reinforces the risk of social exclusion.
"People living on low incomes are primarily affected, and consequently those who are unemployed, lone parents caring full-time for children and people who are unable to work through sickness or disability. Migrants are also particularly affected.
"Living in a deprived area increases the likelihood of being financially excluded as does living in a rural area in new member states. This reflects the scarcity of financial service provision in such communities."
The study shows that financial exclusion forms part of a much wider social exclusion, faced by some groups who lack access to quality essential services such as jobs, housing, education or health care.
Presenting the results of the report, Vladimir Spidla, Commissioner for Employment, Social Affairs and Equal Opportunities, said that public authorities - both at national and European level - have a responsibility to guarantee that all Europeans can access and adequately use the financial services they need. He said that the Commission will be working to encourage member states to move in this direction.
Despite living in the age of internet banking, where transactions can be performed from the comfort of one's home, 21 per cent of the Maltese population do not even have a simple transaction account, commonly known as a current account.
The report, Financial Services Provision and Prevention of Financial Exclusion, was published yesterday in Brussels.
"Malta is considered to be in the medium to high level category of financial exclusion with a level of 21 per cent. This means that these people do not have a transaction account nor a savings account and no immediate access to revolving credit," the report says.
Still, Malta fares better than the majority of new EU member states.
According to the report, which gives an overview of the situation across the 27 EU member states, millions of Europeans are facing an increased risk of social exclusion through lack of access to basic financial services.
It reveals that two in 10 adults in EU-15 (old member states) and almost half in EU-10 (47 per cent) do not have a bank account while many more have no savings and lack access to credit.
The Commission said that although access to financial services has become a necessary condition for participating in economic and social life, yet, in most countries, many people encounter difficulties accessing or using appropriate financial services in the mainstream market.
"Financial exclusion is deeply linked to social exclusion. Poor people or socially excluded people are generally denied access to financial services and the lack of access to financial services reinforces the risk of social exclusion.
"People living on low incomes are primarily affected, and consequently those who are unemployed, lone parents caring full-time for children and people who are unable to work through sickness or disability. Migrants are also particularly affected.
"Living in a deprived area increases the likelihood of being financially excluded as does living in a rural area in new member states. This reflects the scarcity of financial service provision in such communities."
The study shows that financial exclusion forms part of a much wider social exclusion, faced by some groups who lack access to quality essential services such as jobs, housing, education or health care.
Presenting the results of the report, Vladimir Spidla, Commissioner for Employment, Social Affairs and Equal Opportunities, said that public authorities - both at national and European level - have a responsibility to guarantee that all Europeans can access and adequately use the financial services they need. He said that the Commission will be working to encourage member states to move in this direction.