STO scraps plans for own digital bank to join Development Bank

Managing Director of State Trading Organisation (STO) Shimad Ibrahim said on Friday that the company has the opportunity to join the government's development bank instead of the digital bank it planned to develop.

At the company's annual general meeting held on Friday, a shareholder asked for updates on the digital bank plan.

Replying to the question, Shimad said he had received recommendations from the MMA when he applied for a licence to open the bank.

Without going into details on these recommendations, he said STO has the opportunity to participate in the government's development bank.

“We are looking at whether it is better to open a bank ourselves or to be part of a bank,” he said.

A decision will be taken after discussions, he said.

STO applied for a digital banking licence in 2021. However, the central bank decided not to allow digital banking.

With that, STO had decided to reapply for the licence. However, it is not known whether they actually did.

At the time, the company's executives said they hoped to introduce digital banking and revolutionise the way people bank.

The establishment of a development bank to provide concessional financing for development projects and such matters is a presidential promise.

The Development Bank of Maldives was established last May under the powers of the President. The bank will start operations this month, Economic Minister Mohammed Saeed had earlier said.