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Banking Licenses in the Maldives

Eligibility for Licenses

To obtain a banking license in the Maldives, applicants must meet certain eligibility criteria. This includes:

  • Domestic Banks: Companies registered under the Law No. 10/96 (Companies Act) are eligible to apply for a banking license.
  • Foreign Banks: Foreign banks must be subject to consolidated supervision by a supervisory authority in their home country.

License Application Requirements

To ensure that applicants have the necessary qualifications and resources, the Maldives Monetary Authority (MMA) requires the following documents:

  • An authenticated copy of its charter
  • Corporate governance documents
  • Audited financial statements
  • A business plan
  • For foreign banks:
    • A statement from the foreign supervisory authority stating no objection to establishing operations in the Maldives
    • Commitment to consolidated supervision

Evaluation Criteria for License Applications

The MMA will evaluate license applications based on the following criteria:

  • Financial History and Status: The applicant’s financial history and current status are evaluated to ensure they have a sound financial foundation.
  • Character and Professional Experience of Major Shareholders and Administrators: The character and professional experience of major shareholders and administrators are assessed to ensure they are suitable for running a bank.
  • Adequacy of Staffing, Capital Structure, Operational and Financial Resources: The applicant’s staffing levels, capital structure, operational resources, and financial situation are evaluated to ensure they have the necessary resources to operate a bank safely and efficiently.
  • Risk Management Policies and Systems: The applicant’s risk management policies and systems are assessed to ensure they can identify, assess, and manage risks effectively.
  • Soundness of Operations and Business Plan Viability: The soundness of the applicant’s operations and business plan viability are evaluated to ensure they have a viable business model.

Grant or Denial of License

The MMA will grant a license if the applicant meets all the specified conditions. If not satisfied, the MMA may deny the application and provide a written explanation for the denial.