"Overseas, we are seeing a market gradually
developing for so-called 'senior nonpreferred
debt'."
Increasing levels of banking regulation and more stringent
capital demands from regulators will push banks to seek funding
from the capital markets. Dr Andrew Caruana
Scicluna of Camilleri Preziosi thinks that this will bring
a raft of Maltese banks to the market, both locally and
overseas.
The 2008 financial crisis triggered a major overhaul in the
regulatory architecture applicable to banks, which continues to
evolve until today. "Due to more stringent capital
requirements, banks have a thirst for capital. Enhanced capital
requirements are driving many local credit institutions to tap the
local market, and the trend, it seems, will continue. I would not
be surprised if we see more banks coming to the market to
strengthen their capital bases," Dr Andrew Caruana Scicluna
said.
