About Malta Development Bank

About Malta Development Bank

The Malta Development Bank (MDB) was established on 24 November 2017 when the Malta Development Bank Act, 2017 came into force (Act No XXI of 2017 – CAP 574). It commenced operations on 11 December 2017 when the Board of Directors was appointed and held its first meeting. The MDB is fully owned by the Government of Malta.

Mission of the MDB

The MDB shall contribute towards sustainable economic development that benefits the Maltese people in line with public policy objectives by:

  • promoting inclusive and environmentally sustainable economic growth
  • supporting infrastructure development 
  • linking entrepreneurship, investment and economic growth to improved living conditions, a higher quality of life, and better social inclusion.
    Strategic Objective


    The MDB’s strategic objective is to offer financing facilities that support productive and viable operations where the market is unable or unwilling to accommodate such activities on its own in whole or part. 

 The MDB’s activities focus on complementing and supplementing the operations of market players in the provision of financing facilities, particularly to SMEs, infrastructure projects that contribute to national or regional development, and projects which are socially-oriented, energy efficient and environment friendly.

The MDB’s remit of activities

The MDB performs a promotional role in line with public policy. The MDB’s remit of activities covers a wide range of possible operations where there is evidence of market failure. In general terms, the MDB is engaged in the following priority areas:

  • Private Sector Development, in particular financing the private sector through innovative financing, credit enhancement, venture capital, advisory function;
  • Skills and Technology, in particular sustaining competitiveness by investment in innovation, skills, knowledge-generation and technology;
  • Infrastructure development of regional or national importance;
  • Green Economy, in particular supporting clean energy and energy efficiency projects, sustainable transport, and water resources;
  • Community Services, in particular supporting social enterprises operating community services in such sectors as education, health and housing.

The MDB’s governance structure

MDB Board of Directors

The MDB is run by a Board of Directors consisting of a Chairperson and four Directors appointed by the Minister (all from the private non-bank sector) as well as two independent Directors appointed by the Minister on the recommendation of the Malta Council for Economic and Social Development (MCESD). The Chairperson shall be appointed after consultation with the Opposition.

The Chairman and the two independent Directors shall hold office for a period of six years and may be re-appointed. The other Directors shall hold office for five years and may be re-appointed.

The Board of Directors shall exercise its mandate independently and in an autonomous manner and shall not seek or receive instructions from the Government or any other public authority.

The members of the Board of Directors are:

  • Prof Josef Bonnici as Chairman
  • Dr Rose Marie Azzopardi 
  • Mr Robert Borg​
  • Ms Jacqueline Camilleri 
  • Dr Michele Cardinali
  • Mr Paul Cardona
  • Mr Anthony Valvo.

Internal Board Committees

The MDB’s governance structure also includes a Risk Committee, an Ethics and Governance Committee, a Remuneration Committee, an Audit Committee and such other committees as the Board of Directors may require.

In terms of accountability, the Malta Development Bank Act obliges the MDB to present its Annual Report and Financial Statements to Parliament by not later than four months after the end of its financial year.

 The MDB may also be subject to inquiry by the Auditor General.

Supervisory Board

The MDB is subject to the prudential oversight, regulation and supervision of an independent Supervisory Board appointed by the Minister in terms of article 37(1) of the Malta Development Bank Act.

The Supervisory Board shall consist of a maximum of six members who shall include officials from the Malta Financial Services Authority, the Central Bank of Malta, the Ministry for Finance, and two independent professionals with banking or regulatory experience. The Chairperson is appointed by the Minister from among the two independent professionals after consultation with the Opposition.

The members of the MDB Supervisory Board are:

  • Mr John Cassar W​hite as Chairman
  • Mr Oliver Bonello, Deputy Governor, Central Bank of Malta
  • Dr Christopher Buttigieg, Chief Executive Officer ad interim and Chief Officer Supervision, Malta Financial Services Authority​*
  • Mr Alfred Camilleri, Permanent Secretary, Ministry for Finance
  • Mr Chris Cilia, independent professional.

* Dr Christopher Buttigieg​ was appointed member on the Supervisory Board of the MDB in February 2020

Government Guarantee to MDB

In terms of article 5 of the Malta Development Bank Act, the Government shall guarantee up to 100% of all obligations of the MDB and up to 100% of the loans, facilities or guarantees issued by the Bank. The Government guarantee is unconditional and irrevocable.

Article 5(1) provides that the Government shall enter into a Memorandum of Understanding with the MDB to set the maximum limit of Government guarantees to the MDB. This limit sha​ll be expressed in terms of euro and/or percentage of assets/liabilities. This amount will be reviewed on an annual basis in the light of the evolving growth of the MDB’s business.