With over 30 years’ experience in the local and international financial services sector, Alison Micallef’s appointment as the Malta Development Bank’s new CEO comes at a time of important growth in development banking. “This is a time when development banks are expected not only to provide access to finance, but also to play a more active role in helping their countries achieve broader social and economic goals.”
“Over the course of my career, I have worked in areas like regulatory governance, innovation, and sustainable finance. This has helped shape a balanced approach that values both financial responsibility and social impact.”
“My focus now will be on ensuring that the Malta Development Bank continues to be an effective and reliable partner in addressing national challenges, namely supporting SMEs, facilitating green investment, and expanding access to education and training.”
According to Ms Micallef, the MDB is well positioned to support Malta’s long-term development priorities, and her commitment will be to helping it do so in a way that is inclusive and forward-thinking.
“The Bank’s role has grown significantly in recent years, and that is no coincidence. As Malta looks beyond traditional economic indicators like GDP, there is a need for institutions that can help deliver on broader national goals such as improving quality of life, promoting sustainability, and reducing inequality.”
“The Malta Vision 2050 framework captures this shift in mindset, placing emphasis on well-being, inclusion, innovation, and resilience. These goals require long-term, strategic investment, and that is where the MDB’s role becomes crucial,” she added.
Ms Micallef notes how the MDB specifically steps in where private financial institutions may not be able to act alone, particularly in areas where market gaps exist.
“Our job is to complement the work of commercial banks and to ensure that socially and economically important projects can move forward. Whether it is in clean energy, digitalisation, education, or affordable housing, the MDB provides the tools to make national objectives investable.”
This collaborative role is further highlighted by the MDB’s partnership with the European Investment Bank Group, which has become a key force in supporting small and medium-sized businesses in Malta. Beyond public infrastructure, the EIB Group, through intermediated lending, guarantees, and risk-sharing tools with local banks and the MDB, helps finance smaller projects that might otherwise fall below the EIB’s direct lending threshold.
Malta’s highly liquid and competitive banking sector means that guarantees, rather than direct loans, are often the most effective tools. Through these mechanisms, the MDB serves as a conduit for EU resources and international support, reaching smaller-scale projects with strong local relevance and impact.
A strong example of this in action is the launch of two new schemes: one dedicated to sustainability and the other to the cultural and creative industries. Backed by the European Investment Fund, these initiatives are designed to channel EU resources into areas of strategic importance for Malta’s future.
Ms Micallef explains how such schemes enable the Malta Development Bank to support businesses pursuing sustainable goals, such as environmental impact, accessibility, and social inclusion, along with those operating in the cultural and creative industries, by improving their access to finance.
She also noted how in partnership with commercial banks like Bank of Valletta and HSBC, and with a third intermediary bank expected to join soon, the MDB is making it possible for EU-backed guarantees to be translated into commercially accessible loans.
Another impactful initiative is the Further Studies Made Affordable Plus (FSMA+) scheme, a programme which since its launch, has helped more than 750 students access higher education, with support exceeding €33 million. The scheme allows students to take out subsidised loans to cover tuition fees, accommodation, and living costs, whether they are studying in Malta or abroad.
“To date, the most popular fields of study include economics, aviation, medicine, and the arts. These are future contributors to the economy, and we are proud to support them. More importantly, this initiative ensures that financial background is not a barrier to opportunity,” added Ms Micallef.
Asked about her long-term vision for the Malta Development Bank, Ms Micallef wants to see the institution continue to evolve as a trusted development partner that works across the public and private sectors.
“We want to maintain financial discipline, of course, but also ensure that our work delivers meaningful and measurable benefits to society. Ultimately, we are here to help build an economy that serves the needs of today, while preparing for the challenges of tomorrow,” she concluded.
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