Huge potential for capital markets as deposits by households reach €20bn

At Calamatta Cuschieri’s Annual Capital Markets seminar, major industry leaders from the financial services sector and beyond reached a strong consensus on the instrumental role of capital markets in supporting Malta’s economic progress in recent years. They also emphasised the potential of capital markets to facilitate substantial investments necessary for sustained growth.

“Looking at economic growth in the past years, there’s an evident correlation with the role of capital markets. With over €20bn in dormant bank deposits by households, there is an untapped potential for more productive investment, including through a stimulation of the secondary market to fuel further growth,” argued Nick Calamatta, co-CEO of Calamatta Cuschieri Moneybase in his keynote message.

These comments were also echoed by Simon Zammit, CEO of the Malta Stock Exchange, who highlighted the evolution of capital markets over the past years, as more firms appreciated the opportunities of securing finance through public participation. “Capital markets today are at the centre of the growth in the financial services industry,” he argued, while noting that the participation of retail investors continues to grow.

Lorraine Vella, MFSA’s head of Capital Markets Supervision shared her views from a regulators’ perspective, providing insights on the key elements sought after by the Authority during the listing process, including the company’s financial stability, strength of governance structures and information transparency.

The Annual Capital Markets seminar, held at Xara Lodge in Rabat, featured a very high-profile list of speakers who participated in three different panels.

• Archie Bethel, chairman of Hili Ventures; Ryan Sciberras, partner – Head Advisory, PWC and Gilbert Guillaumier, partner – Strategy & Transactions, EY discussed mergers and acquisitions as an increasingly important role in Malta’s economic development.
• George Vella, managing partner, Grant Thornton; Hermione Arciola, partner, KPMG; Michael Stivala, chairman, Malta Developers Association and Michael Warrington, CEO of AX Group addressed the symbiotic relationship between capital markets and real estate.
• Independent advisor Albert Frendo; Jordan Portelli, chief Investment officer at Calamatta Cuschieri; Christopher Muscat, CEO of Hudson Group; Nick Xuereb, CFO, Toly Products Limited and Sarah Curmi Audit & Assurance Business leader, Deloitte Malta discussed the traditional financing model adopted by local corporates with an emphasis on treasury and liquidity management.