The Maldives Monetary Authority (MMA) has clarified that all financial institutions are licensed only after completing the legal requirements outlined in the Banking Act, dismissing recent media reports as false.
In a statement issued on Monday, the central bank addressed what it described as misinformation surrounding the procedures followed in issuing banking licenses. The MMA reiterated that it follows a structured three-stage process as per Act No. 2010/24 (Banking Act), which includes providing guidance to applicants, evaluating license applications, and issuing licenses.
During the evaluation phase, the MMA said it assesses factors such as the applicant’s financial capacity, source of capital, business plan, and the suitability of shareholders and senior management. Proposals are reviewed internally and then forwarded to the Advisory Committee on Financial Institution Licensing before a final decision is made by the MMA Board.
Approved applicants are first granted a conditional license. A full license is issued only after the bank fulfills all operational requirements within the stipulated timeframe.
“All recently licensed banking institutions have followed the same due process,” the MMA stated, adding that it prioritizes the integrity and stability of the financial sector.
The clarification comes amid speculation regarding the licensing process of BIC Bank Maldives, which was recently reauthorized after fulfilling the necessary conditions.
In a statement issued on Monday, the central bank addressed what it described as misinformation surrounding the procedures followed in issuing banking licenses. The MMA reiterated that it follows a structured three-stage process as per Act No. 2010/24 (Banking Act), which includes providing guidance to applicants, evaluating license applications, and issuing licenses.
During the evaluation phase, the MMA said it assesses factors such as the applicant’s financial capacity, source of capital, business plan, and the suitability of shareholders and senior management. Proposals are reviewed internally and then forwarded to the Advisory Committee on Financial Institution Licensing before a final decision is made by the MMA Board.
Approved applicants are first granted a conditional license. A full license is issued only after the bank fulfills all operational requirements within the stipulated timeframe.
“All recently licensed banking institutions have followed the same due process,” the MMA stated, adding that it prioritizes the integrity and stability of the financial sector.
The clarification comes amid speculation regarding the licensing process of BIC Bank Maldives, which was recently reauthorized after fulfilling the necessary conditions.
