All lending decisions made under board-approved policies, BML says

The Bank of Maldives (BML) has denied allegations that funds for government-awarded projects were being disbursed without the approval of the bank’s board or in violation of lending regulations.

The statement follows claims that the bank had issued financing to companies recently awarded government contracts without proper authorisation.

On Thursday, the government signed 206 agreements with 53 private companies to implement projects across nine sectors. The projects, valued at MVR 2.7 billion, will be executed under contractor-finance arrangements through the government’s Public Sector Investment Programme (PSIP).

In a statement issued on Sunday, BML said its board and management act “with utmost prudence and independence” and that all operations comply with national and international banking standards.

According to BML, the bank’s governance framework follows the Banking Act, regulations of the Maldives Monetary Authority (MMA), and international standards such as Basel III and IFRS 9. The bank also undergoes regular audits by independent international audit firms.

BML stated that all lending decisions are made in accordance with its credit policies and MMA rules, including assessments of repayment capacity, single-borrower exposure, and group exposure. “If the companies that received government projects are existing customers, they may apply for loans under the bank’s established policies,” the statement said.

The bank clarified that no employee has the authority to make loan decisions independently, as all lending is governed by board-approved procedures and internal regulations.

As of the end of the third quarter of this year, BML’s total loan portfolio stood at MVR 23.7 billion, with MVR 6.5 billion in new loans disbursed during the year.

Loan distribution by sector as of September 2025 was:

BML said it will continue to operate under strong governance principles to safeguard the interests of depositors, shareholders, and other stakeholders.

The bank urged the public to avoid spreading misleading information, stating that false claims could harm customer confidence and shareholder trust.