Lowest income households see deposits double

Maltese households with the lowest incomes had the largest increase in bank deposits across euro area.

Statistics published by the Austrian Central Bank show that Maltese households with the lowest incomes had the largest increase in bank deposits among households at that level of income across the euro area. This emerges from a survey coordinated by the European Central Bank, and which has been carried out for the past 14 years.

According to this survey, Maltese households with assets below the national average had per capita deposits with banks amounting to around €9,400 at the end of 2012. By mid-2023 they had increased these deposits to €19,400, which means an increase of €10,000. It was only in Malta that the deposits of those with the lowest incomes doubled over this period. In contrast, on average, in the euro area deposits of this type of household increased from €5,810 in 2012 to €8,040. This means that Malta’s increase was almost three times that observed across the euro area.

It should be noted that, according to the comparative statistics published by the Central Bank of Austria, the poorer households of Cyprus and Greece have seen their deposits decrease in recent years. Italian families with lower-than-average assets have seen their savings increase ten times less than the rate observed in Malta.

Looking at the absolute level of bank deposits of the poorest households in Malta, one finds that this is the second largest across the euro area. Only families in Luxembourg have better deposits than those of Maltese families. Maltese low-income households have a level of deposits that is more than double the euro area average. Compared to families of the same type in Italy, Maltese households have deposits three times as high. The lowest level of deposits is in Slovakia, where the per capita bank deposits of households with the lowest assets are six times lower than Malta’s level.

These statistics show that the financial situation of the most deprived families in Malta has improved substantially to become one of the best among the euro area countries. In contrast to the austerity policies embraced by pre-2013 Maltese administrations and several current governments in Europe, Malta’s current progressive economic policies have led to a sharp improvement in the financial situation of lowest-income households.

Change in per capita deposits of households with assets below the national average

(2023 compared to 2012)

 Percentage increase in deposits with banks
Malta106.4%
Euro area38.4%
  
Luxembourg79.9%
Belgium76.0%
Germany73.5%
Slovenia72.2%
Austria62.3%
Slovakia61.2%
Portugal49.9%
France43.6%
Spain36.9%
Finland32.9%
Italy11.4%
Cyprus-7.4%
Greece-9.3%
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