Regulatory Alerts2018-01-25
Regulation on Limits on Loans to Related Persons
The Maldives Monetary Authority issued this regulation to prevent imprudent lending by requiring all licensed banks to cap loans to related persons at 15% of capital base individually and 50% in aggregate. It mandates that such loans be fully secured and offered on market terms, while establishing specific exceptions for infrastructure lending, employee benefits, and government-backed debts. The document further imposes strict reporting obligations on directors and executive officers and outlines corrective measures and sanctions for non-compliance.
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