Bank of Valletta is conducting an internal investigation on claims of lending malpractices highlighted by Nationalist MP Kristy Debono, the bank said in a statement today.

Mrs Debono reportedly alleged that officials of the bank are being pressurised to issue loans to un-creditworthy people and companies who have connections with people in power, the bank said.

These are serious allegations and the Bank’s Internal Audit Department has been instructed to conduct an internal investigation as a matter of urgency to determine whether these allegations are founded.

The bank said it will also cooperate fully, as it always does, with the banking supervisors should they decide to carry out their own investigations on these allegations.