Addressing a conference on the evolution of credit management in Malta from a European Union perspective, Mr Galea said businesses in Malta may be careful and cautious when investing in fixed assets, but are usually not so diligent when the investment is made in their client by granting them credit.

He said European companies are increasingly adopting modern control systems based on the groundwork of value-oriented corporate management with the aim of maximising the market value of the organisation.

Mr Galea said that one way businesses can achieve success in credit management is through developing and implementing efficient and effective credit information management systems which best satisfy the needs of the particular organisation.

“Credit managers need to know when, how and what actions need to be taken in order to reach their aim while maintaining a sound business relationship with their clients,” he said.

Among other things, parliamentary secretary Edwin Vassallo spoke about the importance of a code of practice with regard to dishonoured cheques. He said the bank had promised to draw up a code of practice for dishonoured cheques but had never delivered it. However, he said, HSBC had managed to analyse which of its clients usually have their cheques dishonoured.

He expressed his hope that other banks are also conducting the same exercise.