Ripping off customers, as usual

Bank of Valletta is run like a government department by political appointees and a board of directors with no skin in the game. Lately, Bank of Valletta has survived by extracting value from its shareholders and after botching the Deiulemar case, Bank of Valletta is burning even more of its capital simply to add to its reserves. Their funds don’t beat the market yet take 4% from their clients on top of a yearly fee. It’s insane what Labour is doing to BOV and its story is evolving very much like the Air Malta fiasco: a public company wrecked and looted by the party in government.

It’s the customer and shareholders who are funding BOV’s survival, and in many small ways, BOV preys on an uninformed public to make its profits, just like it does with its underperforming funds. So, it is not surprising to see that BOV is giving shabby low-interest rates for deposits when the ECB interest rates for banks depositing their reserves start at 2.5%. Other local banks seem to be more honest about current interest rates, but still nothing fancy.

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