‘Today, there is no place for management by diktat’ – Malta Development Bank outgoing CEO

After five years at the helm – two as Deputy CEO and three as CEO – the outgoing leader of one of Malta’s prominent financial institutions, the Malta Development Bank (MBD), has shared a message of gratitude and reflection on his tenure, which began in 2020 just before the onset of the COVID-19 pandemic.

“It’s fantastic how time flies when you’re having fun,” Paul V. Azzopardi said, crediting the success of his term to the strength of the team he worked with.

“Throughout, of course, it was the team that accomplished so much and made the experience so enjoyable,” he said in a post shared by the MDB.

He praised the team as a diverse and experienced group of professionals, a mix of longstanding colleagues and new recruits brought in under his leadership, who consistently demonstrated reliability, openness to feedback, and a commitment to continuous improvement.

Mr Azzopardi also noted a principle that shaped his strategic approach: “We applied the textbook to the business, not the business to the textbook. Management and financial principles must first be understood and then applied judiciously according to the nature of the enterprise and its environment. One-size-fits-all is paralysis.”

He also underscored the importance of institutional integrity, noting the distinctive nature of the Malta Development Bank within the local financial landscape. “The MDB is unique in Malta: a government-owned bank which is involved in private sector commerce. Sometimes directly, often indirectly,” he remarked.

Mr Azzopardi stressed that the Bank’s independence and autonomy are not only critical but legally enshrined. “Indeed, section 9 of the Malta Development Act 2017 makes these two features strict requirements. Importantly, the Bank must be clearly seen to be independent and autonomous.”

Reflecting more broadly on leadership and governance, the outgoing CEO emphasised the value of accumulated management knowledge. “The body of management knowledge built up over the centuries (yes, most of history is about management) is tremendous,” he said.

He argued that this knowledge must be both formally learned and practically adapted to the specific context of each organisation, society, and environment. “Today, there is no place for management by diktat,” he asserted, reinforcing the importance of informed, collaborative, and adaptive leadership.

Mr Azzopardi highlighted several accomplishments by the Bank over the past five years, including the launch of two student support schemes and the issuance of direct loans for infrastructural projects totalling nearly €25 million. Altogether, these initiatives contributed to a broader portfolio of €669 million in loans extended to 1,491 customers.

“Our thanks here go to the commercial banks who have partnered with us so that the MDB could satisfy its main objective: bridging financial gaps,” he continued, emphasising that this gap was being addressed through the effective and efficient use of public funds, with no waste.

Mr Azzopardi affirmed the Bank’s commitment to its core mission: “During my last three years as Chief Executive Officer of the MDB, I can state that my team and I did not leave a bankable project without finance,” he said, stating that this was always achieved within the parameters of the Malta Development Bank Act of 2017, as well as the EU Remit and State Aid rules.

Mr Azzopardi noted that after five years of work at the MDB – supporting SMEs, students, infrastructure projects, and social organisations – the Bank generated a profit of €8 million over the past three years.

“Together we can achieve much, and alone we can achieve some things as well but risk falling into chaos,” once again acknowledging the professionals across the various functions at the MDB.

He also expressed gratitude to the successive chairmen and board directors for their support and extended his thanks to Ministers Edward Scicluna and Clyde Caruana for their backing on high-level government policy, as well as Permanent Secretaries Alfred Camilleri and Paul Zahra for their continued collaboration.

“There is much that the MDB can still achieve under wise leadership, and I wish the Bank and its staff, present and future, years of progress supporting the Maltese economy in a sustainable manner,” he concluded.