The European Central Bank (ECB) has withdrawn Nemea Bank's licence, in line with a recommendation made by the local financial regulator The Malta Financial Services Authority (MFSA) in January of this year. 

The MFSA has proposed to the European Central Bank the withdrawal of the licence of the Maltese Nemea bank and the Authority has also put a hold on withdrawals of deposits from the bank.

The Maltese bank had been marketed as Europe's first online-only bank, offering retail, business, investment and private banking.

The MFSA, earlier last year had said in a statement that despite repeated requests, the bank has to date made no tangible progress on the Authority's demands to fulfil regulatory requirements.

In a seperate statement, the Central Bank of Malta reaffirmed that Nemea Bank plc is a small bank that has minimal links with the domestic economy and the decision to withdraw its banking licence is not expected to have a material impact on the local financial system.

"The banking sector in Malta remains sound, resilient and enjoys ample liquidity. The withdrawal of the banking licence of Nemea Bank plc arises from developments that are exclusively specific to this Bank. This decision confirms the determination and decisiveness of the competent authorities in protecting depositors and safeguarding the integrity of Malta’s financial system by upholding good governance in financial institutions licensed in Malta."

Further information may be obtained by accessing the MFSA’s webpage www.mfsa.com.mt which includes a number of Frequently Asked Questions.