The Maldives Monetary Authority (MMA) has granted pre-operational approvals to two entities seeking to establish Tier 1 banks in the country, marking a significant step in efforts to expand and diversify the Maldivian banking sector.

The approvals, issued on May 19, 2025, were granted to Maldives Finance and Leasing Company Pvt Ltd (MFLC) and BIC Bank Maldives Private Limited. MFLC has been authorised to transition into a Tier 1 bank under the proposed name Maldives Finance and Leasing Bank (MFLB). Meanwhile, BIC Bank Maldives has been cleared to establish itself as a new Tier 1 bank under the same proposed name.

According to the MMA, these approvals confirm the Authority’s decision to license MFLB and BIC Bank Maldives as fully operational banks in the country, contingent on the successful completion of all pre-operational requirements as outlined by the regulator.

Currently, the Maldivian banking sector is largely dominated by Bank of Maldives (BML), and the entry of new Tier 1 banks is expected to increase competition and expand service options for customers.