The Bank of Maldives (BML) has denied allegations that it disburses funds to contractors of government-awarded projects without board approval or in violation of its loan disbursement policies.

In a statement, the country’s national bank highlighted that both its board and management operate with full prudence and independence, guided by robust corporate governance practices and adherence to international banking standards.

BML noted that its operational frameworks are established in compliance with Maldivian banking laws and regulations, prudential requirements set by the Maldives Monetary Authority (MMA), and global standards such as Basel III and IFRS 9. The bank also highlighted that its financial statements are regularly audited by international audit firms, which continue to verify the soundness of its operations.

According to BML, all lending activities are carried out under board-approved strategies and policies, with oversight, direction and guidance from the board. Loan approvals strictly follow the bank’s credit policies and the principles set by the central bank, including assessments of repayment capacity and exposure limits for individual and group borrowers.

Before approving any loan, the bank conducts thorough assessments of the borrower’s repayment capacity, following established underwriting standards. BML reiterated that this procedure applies to all lending, without exception.

The bank stated that companies awarded government projects may apply for financing through their regular channels and are subject to the same credit evaluation criteria as all other clients. It added that the board has set specific lending limits for sectors such as government investments, loans backed by government guarantees, financing for private parties based on government receivables and loans to state-owned enterprises.

BML further clarified that no single employee holds decision-making authority over loan approvals. All loan-related decisions are made in accordance with the policies, procedures and governance structures set by the board.

As of the end of the third quarter of this year, BML’s total loan portfolio stood at MVR 23.7 billion, with MVR 6.5 billion in new loans disbursed in 2025.

Positioning itself as a key contributor to national development, BML reaffirmed its commitment to maintaining strong governance principles and international standards to protect the interests of its depositors, shareholders and stakeholders.

The bank also urged the public not to spread misinformation, calling the dissemination of false or misleading claims about the institution “irresponsible” and harmful to public trust.