Bank of Valletta withdraws high-balance fee on corporate deposits

Bank of Valletta will no longer be charging the high-balance fee on deposits to non-personal customers, following the hike in interest rates by the European Central Bank.

The high-balance fee was introduced as a result of the negative interest rate scenario that was prevalent till the end of July 2022.

BOV said in a statement that the fee has been withdrawn from the tariff of charges as from 1 August 2022.

Albert Frendo, chief business banking officer said BOV is following and adapting to the evolving environment. “We are ensuring that the changes in market dynamics are reflected in our pricing and business strategy.”

The ECB raised its key interest rate by 0.5 percentage points to 0% last month and plans further hikes this year in a bid to calm down runaway inflation. The rate has been negative since 2014 in a bid to boost the Eurozone’s economy after years of weak growth.

But with inflation shooting upwards, the ECB has been forced to intervene, even though economists fear Europe’s economy could go into recession.

Frendo said BOV was ensuring that the level of corporate deposits is sustainable and within the required parameters. “Within such perspective, we make sure that any benefits resulting from market changes are immediately accrued to the customer, whilst effectively managing negative changes as much as possible,” he said.

The bank said its decision dovetails with other efforts being made in support of Maltese entrepreneurs. “Within an ensuing inflationary period, the bank continues to ensure that it remains the key provider of commercial funding, underpinned by strong lending fundamentals and effective feasibility assessments to continue supporting sustainable economic growth in the various economic sectors that are driving the Maltese economy,” Frendo said.