Pre-operational permits for new banks meet procedure, MMA says
MMA noted that each re-application is treated as a new submission and evaluated accordingly through a full review process.
The Maldives Monetary Authority (MMA) said on Monday that the recent issuance of pre-operational permits for new banks was done in line with established regulatory procedures.
The clarification follows a report by Adhadhu claiming that the MMA granted a pre-operational permit to BIC Maldives on 27th of last month after its initial application had been rejected by the MMA Board.
In a statement, the MMA said that although the Board initially decided not to approve a banking licence application, the legal framework allows re-application following a mandatory cooling-off period. The MMA noted that each re-application is treated as a new submission and evaluated accordingly through a full review process.
According to the MMA, the process for licensing a new bank involves several steps:
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The application is first assessed by the Licensing Section.
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The Licensing Section’s recommendation is reviewed by the Advisory Committee on Financial Institution Licensing.
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Based on the committee’s advice, the Governor presents the application to the MMA Board.
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A pre-operational permit may be issued if the Board decides the proposal meets regulatory requirements.
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A final operating licence is granted only after MMA inspects the premises and confirms all operational standards are met.
The evaluation criteria for a banking licence include assessing the entity’s financial capacity, capital sources, ownership structure, senior management, and business plan.
On the same day BIC Maldives received its permit, pre-operational permits were also issued to Maldives Finance and Leasing Company (MFLC).
There are currently seven licensed banks operating in the Maldives:
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1-
Bank of Maldives (BML)
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2-
Maldives Islamic Bank (MIB)
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3-
State Bank of India (SBI)
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4-
Habib Bank Limited (HBL)
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5-
Bank of Ceylon (BOC)
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6-
Mauritius Commercial Bank (MCB)
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7-
Commercial Bank of Maldives (CBM)
