UPDATED | Family tragedy prompts resignation of Bank of Valletta chairman

Adds statement by the Finance Minister

The chairman of the Bank of Valletta, Roderick Chalmers, has announced he will step down in the wake of the tragic loss of his youngest son Alistair, 31.

Chalmers, the government-appointed chairman of BOV, which government holds 25% of shares, informed finance minister Tonio Fenech he had decided to significantly reduce his business and other public commitments with immediate effect, and spend more time with his family.

"Throughout my 40 plus years of professional life, [my wife] Mary Rose has provided me with unconditional support - and has been a hugely effective ambassador for every organisation with which I have been involved.  It is now time for me to provide her with that same unconditional support at this very difficult stage in our lives," Chalmers wrote.

The former chairman said he had no doubt BOV's senior executives, led by CEO Charles Borg, would ensure the bank grows as Malta's leading financial institution.

In a statement, Finance Minister Tonio Fenech said that he had accepted Chalmers' decision with regret, while he expressed his full understanding for the decision taken.

Fenech also thanked Chalmers for the "sterling contribution" towards the BOV and Malta's financial services sector over the past years, "during the world's worst ever-financial crisis in living history".

"Throughout his tenure, Chalmers led Bank of Valletta in its efforts to steer away from the international financial crisis that has resulted in the collapse of long-established financial institutions. To the contrary, BOV has gone through a very rigorous stress test by the European Banking Authority and it has always come out as one of the best banks in Europe in terms of the strength of its capital and liquidity ratios and with the way it has introduced its control measures," Fenech said.

He added that it was thanks to Chalmers' efforts that BOV, as the largest financial services institution, was playing a leading role in the development of Malta as a financial services centre.

Chalmers's resignation takes place in the most unfortunate of circumstances, after having weathered internal reforms at Bank of Valletta, prompted by three investigations conducted by the financial regulator into the sale of the La Valette property fund.

Amongst other appointments, Chalmers, an auditor by profession, had led a government commission to reform the tertiary-education grants.