Maltese Banks Resist Interest Rate Hike, Maintain Borrowing Costs Stability

Maltese banks have indicated that they will not immediately raise borrowing costs following the European Central Bank's (ECB) decision to increase interest rates to 2.50% across the euro area.

The ECB's rate hike, which came into effect today, has led to commercial banks in Europe increasing lending costs. However, Maltese banks have taken a cautious approach and plan to maintain stability for their borrowers.

APS Bank confirmed that it will not increase borrowing costs, citing its domestic funding model as the reason. The bank's spokesperson noted that Maltese banks historically experience a lower pass-through of interest rate changes compared to other European banks.

Bank of Valletta (BOV) also stated that it has no immediate plans to adjust its rates, which are currently set at 2.15% per annum for home and business loans and 2.45% for personal loans. The bank will review its base rates quarterly through Company Announcements.

BNF Bank also confirmed that it has announced no changes to its lending rates following the ECB's decision.