MMA Rules BML’s Acquisition of SDFC Illegal Under Banking Act

The Maldives Monetary Authority (MMA) has ruled that the Bank of Maldives (BML) acquired the SME Development Finance Corporation (SDFC) in violation of the Banking Act, as the transaction proceeded without required approvals. The MMA issued a letter to government authorities, but has not publicly commented. BML and the President's Office have not confirmed whether MMA consent was obtained. Following the acquisition, BML plans to convert SDFC into a Sharia-compliant subsidiary, pledging MVR 500 million in SME loans in the first year, MVR 1.9 billion over five years, and MVR 300 million for startups over three years. SDFC, established in 2019 under the MDP, has disbursed nearly MVR 2 billion in SME loans.

The Maldives Monetary Authority (MMA) has ruled that the Bank of Maldives (BML) acquired the SME Development Finance Corporation (SDFC) in violation of the Banking Act, as the transaction proceeded without required approvals. The MMA issued a letter to government authorities, but has not publicly commented. BML and the President's Office have not confirmed whether MMA consent was obtained. Following the acquisition, BML plans to convert SDFC into a Sharia-compliant subsidiary, pledging MVR 500 million in SME loans in the first year, MVR 1.9 billion over five years, and MVR 300 million for startups over three years. SDFC, established in 2019 under the MDP, has disbursed nearly MVR 2 billion in SME loans.

The Maldives Monetary Authority (MMA) has ruled that the Bank of Maldives (BML) acquired the SME Development Finance Corporation (SDFC) in violation of the Banking Act, as the transaction proceeded without required approvals. The MMA issued a letter to government authorities, but has not publicly commented. BML and the President's Office have not confirmed whether MMA consent was obtained. Following the acquisition, BML plans to convert SDFC into a Sharia-compliant subsidiary, pledging MVR 500 million in SME loans in the first year, MVR 1.9 billion over five years, and MVR 300 million for startups over three years. SDFC, established in 2019 under the MDP, has disbursed nearly MVR 2 billion in SME loans.

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