The Malta Development Bank (MDB) is positioning itself to play a stronger role in the country’s economic growth through strategic investment and enhanced visibility.
In a recent video interview with SiGMA World, Chairman Leo Brincat and Chief Executive Officer Alison Micallef discussed the institution’s priorities as it enters a new phase of development.
Leadership and Strategic Direction
Brincat, who was appointed non-executive chairman in December 2023, said his role is clearly defined around strengthening oversight rather than operations.
The MDB’s Chairman said that while conversations around ESG often focus on environmental and social aspects, its broader value for the bank lies in supporting long-term stability, responsible operations, and meeting the expectations of customers, investors, and the wider community. Brincat added that his challenge is to promote and strengthen the bank’s governance structures, noting this as part of the overall effort to uphold strong ESG principles.
MDB was established by specific legislation in 2017, giving it a clear mandate to support Malta’s economic development. The bank operates with a supervisory board appointed through consultation between the government and the opposition, ensuring broad stakeholder representation.
Public Banking Role in Malta’s Economy
Micallef, who joined as Deputy CEO in February 2024 before becoming chief executive, highlighted MDB’s role in bridging financing gaps left by commercial banks. She said the bank often works in partnership with private institutions on large projects, either sharing exposure equally or providing complementary financing.
“It is a young bank, it has been here for seven years, and I find it very important for the country to have such an institution,” Micallef said. “Our role is to provide, catalyse or bridge the investment gap in the future.”
MDB’s financing activities have been particularly visible during the pandemic, when the institution provided government-backed loan schemes to support businesses. An audit by the National Audit Office at the end of the COVID-19 schemes confirmed the effectiveness of the measures.
The bank now applies tools such as an ESG calculator, in line with requirements from the European Investment Bank and the European Investment Fund, when assessing major projects. This ensures environmental and social considerations are integrated into lending decisions.
Enhancing Accessibility and Visibility
Brincat acknowledged that the bank is working to raise awareness and make its services more accessible.
“Our biggest challenge as a bank is to raise our visibility further,” he said. “Many people stand to benefit from our schemes but either do not know enough about them or might be discouraged by the complexity of certain constraints.”
He emphasized that simplification is a priority, particularly in ensuring that smaller businesses and key growth sectors can access MDB support.
Vision 2050 and Long-Term Strategy
Looking ahead, MDB is aligning its operations with Malta’s Vision 2050 consultation, a strategic document that sets out the country’s development priorities beyond electoral cycles. Brincat said the bank had submitted a comprehensive response that identified positive elements and outlined how MDB can support national objectives.
“We believe strongly in focusing on areas that are crucial for Malta’s future, such as creativity, innovation and research,” he said. “We were encouraged to see these reflected in the Vision 2050 document, and we see ourselves as catalysts and enablers in supporting these sectors.”
The strategy builds on MDB’s own board-approved plan published last year, which set out the bank’s medium to long-term priorities. These include supporting innovation-driven enterprises, sustainable infrastructure, and investments that strengthen the country’s competitive advantages.
A Foundation for Economic Growth
Both Brincat and Micallef emphasized MDB’s commitment to maintaining credibility and effectiveness as it supports Malta’s economic development.
As Malta continues to diversify its economy and attract sustainable investment, the MDB’s role as a publicly mandated lender is becoming increasingly vital. With strategic alignment with Vision 2050 and a focus on expanding accessibility, the bank is well-positioned to broaden its impact and support Malta’s continued growth in the years ahead.