MMA Confirms Process of Acquiring SDFC by BML Follows Legal Procedures

The Maldives Monetary Authority (MMA) has confirmed that the ongoing process of acquiring the SME Development Finance Corporation (SDFC) by the Bank of Maldives (BML) is being conducted in accordance with the legal and regulatory framework governing the financial sector.

In a statement released today, the central bank said it had reviewed whether due procedures were followed in the acquisition process and found no evidence of irregularities. “The MMA has not determined that the process of acquiring SDFC by BML violates the Banking Act of Maldives. BML has also assured the Authority that all aspects of the transaction will be conducted in compliance with applicable laws, regulations, and procedures,” the statement read.

The acquisition, which involves the government’s stake in SDFC being transferred to BML, is aimed at enhancing access to finance for micro, small, and medium enterprises (MSMEs). BML stated that the move is part of a broader effort to drive the digital transformation of MSME banking and to expand financial inclusion across the country.

According to BML, MVR 500 million will be disbursed through SDFC in the first year following the acquisition. The bank also plans to invest MVR 300 million over the next three years through the Maldivian Islamic Social Finance Initiative (MISFI) to promote community development and support sustainable business growth.

Although the transaction has not been finalized, the MMA’s reassurance is expected to ease public concerns and affirm confidence in the oversight of critical changes in the financial sector.