As we begin a new year we cannot not express our worry at the turn of events in our two major banks.

Both banks have recently come up with an early retirement scheme for their employees.

Now we understand and accept that with the progress in banking technology, especially the use of ATMs and internet banking, banking operations for many people have become simpler and available on a 24/7 basis.

Besides, since the beginning of the year, the strategically-important banks in Malta have been supervised by the Joint Supervisory Team under the Single Supervisory Mechanism.

The focus for the banks now is strengthening their capital base and more efficiently managing their capital risks.

The banks thus plan to reduce the risk in certain business operations and regularly review their risk appetite framework.

After the great financial crisis and in the wake of decisions taken by the Eurozone to strengthen the banking basis of the area, the Euro countries have moved to strengthen the banking business and avoid the collapses that have taken place over the past years.

Even today, the banking situation in the Eurozone is not all that good. In Italy, for instance, where rather timid steps have been taken to clean up some rather small banks, there has been massive public disapproval and outcry.

In other countries, such as Spain, even Greece, and of course Ireland, banks in problems have been split up into a bad bank, absorbing all the bad debts, and a good bank.

There is a widespread public debate regarding who ought to pay to bail out the banks in trouble - the State, the lenders, or the clients. It is now accepted that in those cases where the State intervened to shore up and bail out the banks in difficulties, good money was thrown after bad and the whole country suffered perhaps needlessly when there could have been a different, more just, approach. The perception remains that one consequence of the crisis has been that people suffered an undue austerity because of the bankers.

To go back to our original point, while it is right that Europe is coming up with solutions to shore up the banks and thus avoid future collapses in this sector, maybe the medicine that is being meted out to banks on the continent do not really need to be implemented here, given that Maltese banks in general and the two main banks in particular have come out of the crisis with flying colours.

The two main banks say they are coming under increased pressure from the Joint Supervisory Team, just as all the other banks in Europe are. But, this is important, the banks in Malta are not sick banks.

They did have a rather high clientele in the construction industry and for a time there was a fear that Non-Performing Loans were about to increase but this has been addressed and continues to be addressed.

Our concern with regards to the banks shedding their workforce is not just regret at the loss of so many human resources, who have undergone training and have potential but also the loss of banks turning to more profitable areas of business. It may be just a perception but one does get the idea that these two banks would rather retreat to the more traditional of banking business.