The secretary-general of MBN, Kevin James Fenech, spoke to David Kelleher about the Network's role in Malta
The network is a strategic partnership between leading Mediterranean banks designed to promote inter-regional commercial and business relationships. As its name implies, the aim of the Mediterranean Bank Network is to facilitate efficient lines of communication among the members thereby enriching with added value the exchange of information, contacts and individual experience.
In fact, our new mission statement captures the reason d'etre of the MBN rather well:
Preferential and close relationships.
How was Malta chosen as the main office of the network?
Initially the reason was because the initiator and the main force behind the concept of a Network of Mediterranean Banks, namely Bank of Valletta, was of Maltese origin. In fact the holder of the first Presidency of the Network (1996-1999) was Bank of Valletta. It was therefore logical for the Office of the Secretary General, whose role is to manage the said network in conjunction with and in support of the President, to be based in Malta.
The reason why such office continues to be based in Malta is because of the coincidental fact that the successors to Bank of Valletta, namely Garanti Bank, also have a physical presence in the island of Malta. The current President of the network, Ahmet Fesci, also is the manager of the Garanti Bank Malta.
One may even suggest that the practice seems to be evolving in the direction of Malta being the obvious location for the head quarters of such a network. The island of Malta does boast of certain advantages:
It is strategically placed at the very centre of the Mediterranean Sea. It is a neutral State with a strong Euro-Mediterranean identity. It has language diversity in that English, Maltese and Italian are spoken. Historical resonance and, importantly, current unanimous support of the member banks.
Nevertheless, the office of the secretary general will undoubtedly have to follow the bank, which eventually inherits the presidency in two-and-a-half years' time. It is only logical and practical for such office to be in the same country as that of the presidency bank.
The MBN has been established for the past four years. What has the network contributed towards improving and providing business links between Maltese entrepreneurs and other businessmen/bankers in the region?
The scope of the network is not to provide business links between Maltese entrepreneurs and other Euro-Mediterranean businessmen in the region. The network is there for the customers of the individual member banks. In other words, within the context of the question, which specifically refers to Malta, only current or prospective customers of the Bank of Valletta may benefit from the network.
Much in the same way as in Turkey, only customers of Garanti Bank may benefit from the network. This is precisely why the MBN adheres to a strict policy of allowing only one bank per Mediterranean country. Membership of the network is exclusive.
Unfortunately one may not reveal, because client confidentiality, concrete examples to exemplify MBN achievements in this regard. Suffice it to say that if a businessman, who also is a customer of one the MBN banks, wishes to invest in a country where the MBN is represented, he/she may rest assured that MBN will utilise the resources and contacts of the member banks concerned to ensure maximum success.
The pattern is that the flow of business among the member banks is not necessarily ubiquitous. In other words current country trade flows reflect current MBN cooperation patterns: Malta-Italy, Israel-Jordan or Slovenia-Italy, to mention but a few, all reveal strong links. The same however can not be said about other relationships.
Some are just being developed and are still very fragile while others require more time and effort. Let us not forget that this is the Mediterranean which we are talking about and cooperation is not always the first term that springs to mind when describing this sometimes turbulent and unstable region. But that is precisely why the network was established.
The network may however boast of virtually being the only real successful Euro-Mediterranean initiative in the post-Barcelona Declaration era. An initiative which has almost trebled in size in three-and-a-half years covering Malta, Portugal, Spain, France, Germany, Italy, Slovenia, Turkey, Jordan, Israel and Tunisia. This is an achievement in itself for the very characteristics, values and distinguishing features peculiar to each and every country in the Mediterranean region, are extremely delicate. Hence any type of cooperation which is self driven and not propped up by external institutional structures is arguably commendable in itself.
What type of activities are organised?
The MBN meets throughout the year. The annual meeting of the general assembly meets once a year. Whereas the executive board convenes at the President's discretion, the practice has so far been to also meet once a year. There then are the various sub-committees, teams and brainstorming sessions, which meet throughout the year. One could quite confidently claim that the network is very active.
What is your exact role, as secretary general of the network?
The Office of the Secretary General is an independent and permanent part of the network's operation. Its primary scope is to assist the President of the network and manage the work of both the general assembly and executive board.
The secretary general is expected to act as a motor in the quest of further developing further the network and to assume the role of a focal point for the member banks. It is also expected to assume the role of a think thank in terms of MBN reform and development.
Does the MBN have any plans for the immediate future?
Our plans are to continue growing. We hope that by the end of the Garanti Bank presidency the network will be able to refer to a complete Mediterranean representation, that is, one member bank from every Mediterranean country.
We are working on various projects which should continue to solidify the Network's privileged operations, such as the MBN Club Card and the Mediterranean Rim Fund. We also hope to develop our web site further. The aim is to have a more interactive and technologically advanced site, which takes on board contemporary banking practices, which are at the cutting edge of modern technological advances.
Lastly, we are keen on establishing some form of informal relationship with the European Union with a view to exploring the possibility of attracting EU funds for joint ventures.
Why has the network felt the need to have its website and, to date, have you had any response that came solely through the website?
The web site was established so as to act as a reference point or informative source to interested persons or entities. It does however in effect act as our business card and is there to promote the good name of the Network.
The site was only launched a couple of weeks ago and is still to be promoted in the local press of the individual member banks' countries. Hence the response so far has understandably been limited but this should change as it is promoted throughout the MBN countries.
The web site is to serve the purpose of providing visitors with a concise overview of what the network is all about and to facilitate communication with interested parties. Ultimately, however, we recognised that in today's day and age it is imperative to have a virtual presence on the Net.
The web site contains all the fundamental and relevant information about the MBN, that is, history, objectives, structure, mission statement, membership, latest news as well as an "Expression of Interest Form".
All queries are to be addressed to the Office of the Secretary General at kjfenech@mbn.com.mt.
