SDFC Acquisition to Be Carried Out in Compliance with Laws and Regulations: Bank of Maldives

The Bank of Maldives (BML) has confirmed that its planned acquisition of the government’s shares in the SME Development Finance Corporation (SDFC) will be conducted in compliance with the Banking Act and all applicable regulatory requirements.

Following Cabinet approval of the transaction, BML has officially begun the regulatory process to acquire the state-owned institution, which provides financing to small and medium enterprises (SMEs) across the country.

In a statement today, the Bank said: “We are now progressing through the necessary regulatory steps,” adding that the acquisition will only be completed once all legal and procedural requirements are fulfilled.

The Maldives Monetary Authority (MMA), the central bank of the country, also issued a statement affirming that BML’s planned transaction complies with established banking act and regulations. The MMA said it had reviewed the matter following public concerns and confirmed that no aspect of the proposed deal violates the Banking Act.

“Based on the information provided by BML, the Authority has reviewed the matter to ensure compliance with relevant legal and regulatory frameworks,” the MMA stated. “BML has assured the Authority that the transaction will proceed in line with all applicable laws and procedures.”

BML has already initiated the required legal processes and confirmed its commitment to transparency and regulatory compliance throughout the acquisition.

As part of the proposal, BML has pledged to disburse MVR 500 million in SME loans during the first year and MVR 1.9 billion over five years. The bank will also invest MVR 300 million in MISFI to support start-up businesses.

Once the acquisition is complete, SDFC will become a subsidiary of BML and transition into an Islamic financial institution. Lending rates for SMEs will remain unchanged, and BML plans to enhance services through digital upgrades and expanded nationwide access.

The government has stated that the transaction is intended to strengthen SDFC’s financial capacity and ensure long-term support for SMEs. Both the Bank of Maldives and MMA have reaffirmed that the acquisition process will be governed strictly by legal and regulatory standards.