The Bank of Maldives (BML) has issued a categorical denial of allegations concerning its lending practices, asserting that all loan disbursements are conducted in strict accordance with its governance protocols and regulatory obligations.
The bank rejected claims that funds were improperly extended to contractors involved in government projects, specifically those awarded recently to private local firms, without the requisite approval of its Board of Directors and in violation of formal lending policies. In its statement, BML affirmed that all loans are issued under established procedures.
The institution underscored that its board and management operate with “complete prudence and independence,” underscoring its commitment to sound corporate governance. Operational frameworks, it stated, are aligned with Maldivian banking law and reflect the highest standards of international banking practice.
Compliance with prudential regulations issued by the Maldives Monetary Authority (MMA) was also highlighted, alongside adherence to global benchmarks such as Basel III and IFRS 9. BML noted that its governance and financial soundness are routinely validated through independent audits conducted by internationally recognised firms.
Lending operations, the bank clarified, are governed by board-approved strategy and implemented through policies defined across operational areas. All loans conform to internal credit policies and meet regulatory requirements set by the MMA.
Underwriting principles serve as the primary criterion for loan issuance, applied consistently across all transactions. Before disbursement, BML conducts a comprehensive assessment of the borrower’s repayment capacity, incorporating Single Borrower Exposure and Group Borrower Exposure limits.
Where companies awarded government contracts are existing BML clients, the bank stated that they may apply for loans under standard procedures. These are issued on conventional business terms and evaluated in accordance with the bank’s credit policies.
Sectoral lending limits, established by the board, govern the bank’s exposure across various domains. These include caps on direct investments in government-related matters, loans backed by government guarantees, financing based on government receivables, and lending to majority government-owned entities.
As of the end of the third quarter, BML reported a total loan portfolio of USD 1.54 billion. During the current year, the bank disbursed USD 421.51 million in new loans.
The composition of the outstanding loan portfolio as of September reflects a broad distribution across key sectors. Tourism accounted for the largest share, with USD 564.73 million in loans, followed by lending to private individuals at USD 346.43 million. The construction and housing sector held USD 330.17 million, while transport and communication represented USD 155.64 million. Loans to businesses stood at USD 67.44 million, with the remaining USD 72 million allocated across other sectors.
BML positioned itself as a principal investor in the Maldives’ development, underscoring its role in supporting national progress and societal advancement. In closing, the bank reaffirmed its commitment to robust governance and internationally recognised standards, aimed at safeguarding the interests of depositors, shareholders, and other stakeholders. It appealed to the public to refrain from disseminating information that misrepresents the facts.