The Maldives Monetary Authority (MMA) has formally confirmed that the recent process of acquisition of the SME Development Finance Corporation (SDFC) by the Bank of Maldives (BML) fully adheres to the regulatory framework governing banking and financial institutions in the country. In response to public inquiries, MMA clarified that the transaction complies with the Monetary Authority’s supervisory policies and applicable laws. It further confirmed that the ongoing integration of SDFC into BML’s operations does not contravene any existing banking regulations in the Maldives.
According to MMA, the Bank of Maldives has met all the mandatory criteria set out by the Authority for such an acquisition. The central bank reviewed the documentation submitted by BML and verified that the institution’s business conduct remains aligned with national financial laws and standards. MMA’s assurance serves to reinforce the credibility of the transaction, especially in light of the strategic importance of SDFC to the local economy.
With this acquisition, SDFC is being restructured as a fully Shari’ah-compliant and digital-first subsidiary of BML, marking a major enhancement in the provision of technology-driven financial services to Micro, Small, and Medium Enterprises (MSMEs). The restructured entity will place a particular focus on underserved and priority sectors such as start-ups, women-led businesses, fisheries, agriculture, trade, and e-commerce.
BML’s Chief Executive Officer, Mohamed Shareef, emphasized the importance of MSMEs in driving the Maldivian economy, noting that this sector plays a critical role in economic innovation and grassroots development. He reiterated the bank’s commitment to enhancing access to financial services and fostering a more inclusive financial ecosystem.
SDFC, under BML’s stewardship, is expected to significantly expand its lending capacity beyond its previous scale while retaining the favorable terms that MSMEs have historically enjoyed. In the first year following the acquisition, BML plans to disburse MVR 500 million in financing through the newly integrated subsidiary.
In addition to this, BML will invest MVR 300 million over a three-year period under the Maldives Islamic Social Finance Initiative (MISFI), which supports inclusive, sustainable, and Shari’ah-compliant financial solutions. These initiatives are designed not only to increase credit access for small businesses but also to promote digital financial literacy and strengthen the economic resilience of key growth sectors.
The strategic rationale behind the acquisition aligns with BML’s broader mandate to support national economic development. By leveraging its nationwide presence, strong capital base, and growing expertise in digital banking, BML aims to accelerate the transformation of MSME banking in the Maldives. The enhanced capabilities of SDFC as a subsidiary will enable the delivery of tailored financial solutions such as digital lending platforms and online marketplaces, empowering entrepreneurs and small businesses across the archipelago.
Further operational and financial details regarding the acquisition are expected to be released in the coming weeks. However, with MMA’s confirmation of regulatory compliance and BML’s planned investments in the MSME ecosystem, the transaction marks a proactive step in modernizing financial services and broadening equitable access to capital for the country’s small business sector.
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