Access Bank has expanded to Europe through Malta.
Access Bank Plc is the parent of all Access Holdings’ banking entities.
Yesterday, December 10, Access Holdings announced that the group has secured regulatory approval to operate as a bank in Malta. That is, Malta Financial Services Authority (MFSA) and the European Central Bank (ECB) licensed The Access Bank Malta Limited (Access Malta) as a credit institution.
Access Malta is the grand-child of Access Bank Plc. The banking group’s subsidiary, The Access Bank UK Limited (Access UK) wholly-owns Access Malta.
Prior to January 2020, Access Bank could have passported its UK licence to operate in Europe. However, following Brexit, the banking group had to apply separately for a European licence. To apply for a European licence, a company first has to choose its operating country. So, of the 27 EU member states, Access Bank chose Malta to launch its European ambitions.
“Europe has emerged as Africa’s leading trading partner…” according to Jamie Simmonds, Founding CEO and MD of Access UK. “…The Access Bank Malta Limited is ideally positioned to deepen trade and meet the financing and banking needs of our clients in these expanding markets.”
More information on Access Bank UK Limited
Access Bank UK Limited received its banking authorisation from the Financial Services Authority (FSA) in 2008.
The FSA was the main financial services regulator in the UK from 2001 to 2013.
However, the Financial Crisis of 2008 necessitated a shake-up which led to a split of the FSA’s responsibilities.
Now, banks in the UK are regulated by the twin peaks, the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), formed in 2013 to replace the FSA.
Thus, Access UK is currently authorised by the PRA and regulated by both FCA and the PRA.
Why Access Bank chose Malta
Access Bank chose Malta for its geographical positioning, strong economy and specialisation in international trade finance.
Malta is an island located in-between northern Africa and southern Europe. “By establishing operations in Malta, we will gain a foothold in a market that bridges European and North African economies…” said Roosevelt Ogbonna, CEO of the banking group.
The recently-appointed CEO of Access Malta Renald Theuma added, “Malta is uniquely positioned as a bridge between Europe and Africa, making it an ideal location for our subsidiary.”
Prior to his appointment as CEO, Theuma was the Malta Representative of Access UK. Before joining the Access Group in December 2022, he spent almost two decades at FIMBank PLC. FIMBank is a 30-year-old large Maltese bank that specialises in trade finance and corporate international banking.
Only 20 of the 27 EU member states adopt the Euro as their official currency. Malta is a member of both the Euro area and the European Union. Thereby, making international banking and trade from and with Malta seamless.
Theuma added that, “This move allows us to engage more closely with customers in Europe and deliver tailored financial solutions across both continents.”
The country’s financial services sector grew by 11.8% adding €1.25 billion in Gross Value Added (GVA). As a result, the country’s real GDP growth will average 5.7% this year. The Eurozone’s GDP growth of 0.8% pales in comparison to Malta’s. Accordingly, Fitch Ratings has maintained the Malta’s A+ rating with a stable outlook.
Highlighting Malta’s strategic positioning, Ogbonna said, “…It further enhances our bank’s capacity to support clients with innovative solutions tailored to cross-border trade and investment opportunities.”
In conclusion, The Access Bank Malta Limited will focus on international trade finance, according to its statement. In its initial phase, it will employ 30 people. Expanding to Malta brings the group closer to its goal of 26 countries in five years.
Exchange rate: 1 USD to 1549.15 NGN, as of 17:09 (GMT), Dec 11, 2024
