Regulation on Capital Adequacy

ރައީސުލްޖުމްހޫރިއްޔާގެ އޮފީސް ބޮޑުތަކުރުފާނުމަގު މާލ،ެ ދިވެހިރާއްޖ.ެ ފޯނ:ު 3323701 ، 3336137 ފެކްސ:ް 3325500 ވެބްސައިޓ:ް އީމެއިލ:ް mv.gov.po@gazette mv.gov.gazette.www  ގެޒެޓުގައި ޝާއިޢުކުރަނ،ީ ޤާނޫނުތަކާއ،ި ގަވާއިދުތަކާއ،ި ސަރުކާރުގެ އޮފީސްތަކުން ނެރުއްވާ އިޢުލާންތަކާއ،ި ދެންނެވުންތަކާއ،ި ނޫސްބަޔާންތައް ފަދަ ލިޔުންތަކެވ.ެ  ގެޒެޓް ޝާއިޢުކުރަނީ ކޮންމެ ހަފުތާއެއްގެ ހޯމަ ދުވަހާއި ބުރާސްފަތި ދުވަހުއެވ.ެ  ހޯމަ ދުވަހުގެ ގެޒެޓުގައި ޝާއިޢު ކުރެއްވުމަށް ފޮނުއްވާ ލިޔުންތައް ފޮނުއްވުމުގެ އެންމެފަހު ވަގުތަކ،ީ ކުރީ ހަފުތާގެ ބުރާސްފަތި ދުވަހުގެ މެންދުރު 12:00 ގެ ކުރިންނެވ.ެ އަދި ބުރާސްފަތި ދުވަހުގެ ގެޒެޓުގައި ޝާއިޢު ކުރެއްވުމަށް ފޮނުއްވާ ލިޔުންތައް ފޮނުއްވުމުގެ އެންމެފަހު ވަގުތަކ،ީ ހިނގަމުންދާ ހަފުތާގެ އަންގާރަ ދުވަހުގެ މެންދުރު 12:00 ގެ ކުރިންނެވ.ެ ލިޔުންތައް mv.gov.po@gazette މި އ.ީމެއިލް އެޑްރެހަށް ފޮނުއްވުން އެދެމެވ.ެ  ގެޒެޓުގައި ޝާއިޢުކުރެއްވުމަށް ފޮނުއްވާ ލިޔުންތައް ލިޔެފައި ހުންނަންވާނީ މައިކްރޯސޮފްޓް ވާރޑުގައި ފަރުމާ ފޮންޓުންނެވ.ެ ގަވާއިދު ނަންބަރ:ު -166R2015/ ވޮލިއުމ:ް 44 އަދަދ:ު 252 ތާރީޚ:ު 10 ޛުލްޤަޢިދާ 1436 - 25 އޮގަސްޓު 2015 އަންގާރަ ADEQUACY CAPITAL ON REGULATION

3 REGULATION PRUDENTIAL ADEQUACY CAPITAL ON REGULATION Paragraphs of Arrangement I PART Preliminary PARAGRAPH ......................................................................................................................................4Introduction 1. ..................................................................................................................................................4Title 2. ......................................................................................................................................4Application 3. ......................................................................................................................................4Commencement 4. ........................................................................................................................................4Definitions 5. II PART Policy of Statement PARAGRAPH .............................................................................................................................................6Purpose 1. ....................................................................................................................................6Responsibility 2. III PART Requirements Specific and Implementation PARAGRAPH ...................................................................................................................7Requirements Minimum 1. ......................................................................................................................8Requirements II-Basel 2. .................................................8etc ,shares capital of Redemption ,Dividends Cash on Restrictions 3. .....................................................................................................8Categories and Measures Capital 4. .................................................................................................10CriteriaforHigherMinimumRatios 5. ...................................................................................................................................10RiskWeights 6. ...............................................................................................................12CreditConversionFactors 7. .................................................................................................................16Plan Restoration Capital 8. .................................................................................................................16Requirements Reporting 9. IV PART Measures Corrective PARAGRAPH ................................................................................................16 Sanctions and Measures Remedial 1.

4 PRELIMINARY :I PART Maldives (24/2010 .No Law of 66 Section to pursuant issued is Regulation This – Introduction 1: .(Act Banking ".Adequacy Capital on Regulation "as cited be shall Regulation This - Title 2: Law (Act Banking Maldives the under licensed Banks all to applies Regulation This – Application 3: .(24/2010 .no 2015. August 25 on effect into come shall regulation This – Commencement 4: expressly where except ,shall Regulation this in used expressions and terms The – Definitions 5: respective same the have ,requires otherwise context the where or Regulation this in below defined :(24/2010 .no Law (Act Banking Maldives the in as meaning .(24/2010 .no Law (Act Banking Maldives the means” – Act) “1( banking the in engage to ,Act the under permit or license a holding party a means” – bank) “2( .Act the of 25 Section in listed activities banking the of part or all; business to loans and in investments less capital 2 Tier plus capital 1 Tier means” – base capital) “3( other of capital the in investments ,subsidiaries financial other and banking unconsolidated orinvestments loans and ,Maldives the businessin do to institutionslicensed financial and banks from deducted also are Base Capital from deducted be to required assets All .nature capital a of .Assets Weighted-Risk Total other or advance ,loan a secure to pledged is that asset an means” – asset encumbered) “4( and depositors to liabilities support to available longer no is asset the that such obligation debt (i (of lesser the is deducted be to amount the ,calculations capital of purposes For .creditors such by secured loan the of balance outstanding the) ii (or pledged asset the of value book the .asset .capital 1 Tier means” – capital leverage) “5( obligation debt other or advance ,loan any means” – nature capital of investment or loan) “6( of purpose the for ,not or secured whether ,party-counter a to indirectly or directly extended issued instruments capital other or shares of holding the financing or ,in investing ,purchasing .bank lending the by 6/81 .no Law the under established Authority Monetary Maldives the means" – MMA) "7( .(Act Authority Monetary Maldives(

5 provisions loss loan ,assets otherintangible and goodwill assetsless gross means” – assets net) “8( benefits tax income future ,reserves revaluation asset other all and) specific and general both( also all are items These .assets encumbered and ,forward carried losses ,)assets tax deferred( .capital 1 Tier from excluded that means ,regulation this in weights risk applying of purposes for” – property residential) “9( living as her/him by used and owner the by occupied be must property the of half-one least at must property the of remainder the from received income lease all of 75% least at and ,space .space living occupied-tenant from derive and issued (equity' shareholders permanent includes” – capital core “or” capital 1 tier) “10( disclosed plus) shares preference perpetual cumulative-non and shares ordinary up-paid fully interests minority plus) profits undistributed plus premium share in-paid additional (reserves loss loan ,assets intangible other and goodwill less ,subsidiaries consolidated of equity the in income future ,reserves revaluation asset other all and) specific and general both (provisions amounts net and ,assets encumbered ,forward carried losses ,)assets tax deferred (benefits tax subsidiaries and branches bank foreign of case the in (branches and office Head from due .Assets Weighted￾Risk Total from deducted also are capital 1 Tier from deducted Assets .)Maldives in operating with above as same the is capital 1 Tier ,Maldives in operating banks foreign of branches For .equity' shareholders permanent for substituting capital assigned ,covenant ,condition any to issubject it if capital 1 Tier for qualify not does instrument Acapital :that provision or ,restriction ,term ;operations banking normal conduct to bank the of ability the restricts) a ( condition financial the to relative unjustified are paymentsthat interest or dividends requires) b ( financial of event the in holder the of option the at redemption early permits or ,bank the of ;deterioration the regarding requirements regulatory with comply to bank the of ability the impairs) c ( or; debt additional of incurrence or assets of disposition .bank failing or troubled a habilitate￾re or capitalize-re ,resolve to actions take to authority regulatory a of ability the limits) d ( ,(losses or (1earnings date-to-year includes”– capital supplementary “or” capital 2 tier) “11( with consistent and MMA by allowed if (2reserves revaluation asset ,reserves undisclosed .capital 1 Tier of 100% to limited is capital 2 Tier Total .instruments capital equity￾debt hybrid and ,)capital 1 Tier of 50% to limited (debt term subordinated ,)assets weighted￾risk of 1.25% to limited (provisions loss loan general ,)standards accounting applicable .paid or declared dividends cash and losses asset other and loan ,taxes for provisions adequate of net be Must 1 on 55% of discount a to subject are securities equity unrealized on gains latent of form the take which reserves revaluation Asset 2 .values market current and values book cost historic between difference the

6 :must instrument equity-debt hybrid a ,capital 2 Tier for qualify To ;up-paid fully and ,subordinated ,unsecured be) a ( ;MMA of consent prior without or holder the of discretion at redeemable be not) b ( unlike (trading cease to obliged being bank the without losses in participate to available be) c ( ;(debt subordinated conventional (shares preference cumulative to similar (deferred be to obligations repayment debt allow) d ( may instrument capital the if even repayments support not does bank of profitability when as unlike (waived or reduced be permanently cannot that interest pay to obligation an carry .(equity' shareholders ordinary on dividends above the having instruments debt convertible mandatory and shares preference Cumulative .MMA the by instructed otherwise unless ,capital 2 Tier for eligible be will characteristics called also (debt term subordinated unsecured ,conventional includes debt term Subordinated It .years five least at of maturity minimum original an has which) capital loan or equity debt immediately years five the During .shares preference redeemable life limited includes also be will annum per 20% of factor amortization discount cumulative a ,maturity preceding .strength capital of source a as instruments these of value diminishing the reflect to applied included amount the ,losses in participate to available not normally is debt subordinated Since .capital 1 Tier of 50% to limited is calculations adequacy capital for weighted-meansthetotalofrisk”–assets weighted-risk total “or” assets adjusted-risk total)“12( .MMA the to submitted be to required returns financial in reported and calculated as assets POLICY OF STATEMENT :II PART capital of level a maintains bank each that ensure to is regulation this of purpose The – Purpose 1: with commensurate is) ii (,creditors and depositors of interests the protect to adequate is) i (which the and bank the in confidence public promotes) iii (and ,bank the of activities and profile risk the .system banking overall and establish to bank each of directors of board the of responsibility the is It – Responsibility 2: this by required levels capital The .times all at adequate fully is that capital of level a maintain be may levels capital Higher .weaknesses operational or financial material no have and ,managed￾well ,sound fundamentally are that banks for acceptable levels minimum the are regulation .below ,III Part 5, paragraph under listed circumstances on based banks individual for required

7 REQUIREMENTS SPECIFIC AND IMPLEMENTATION :III PART :apply shall requirements minimum following the – Requirements Minimum 1: shall bank domestic II Tier or I Tier A :Capital Assigned or Capital up-Paid Unimpaired 1.1 Rufiyaa or ,million 150 Rufiyaa than less not of times all at capital up-paid unimpaired maintain operating branch bank foreign A .Act the of 12 Section under specified as; respectively million 60 (capital assigned (Maldives the in operations its to allocated capital maintain shall Maldives the in a of operation the for required capital up-paid of level the to equal amount an in minimum at .Act the of 13 Section under required as ,bank domestic shall Maldives the in operating branch bank foreign a or bank domestic A :Reserve Capital 1.2 assigned or capital up-paid unimpaired required minimum the lessthan not of reserve capital a build by built be shall reserve The .Act the of 13 and 12 Sections under specified as; respectively ,capital 50% totals reserve the until tax after profits distributable ,net s’bank the of 50% least at allocating the of 25% least at allocating by and; capital assigned or up-paid required minimum s’bank the of minimum s’bank the to equal amount an totals reserve the until tax after profits distributable ,net .capital assigned or up-paid required the than less not are that ratios capital maintain and have shall banks all :Ratios Capital 1.3 the by set be may that ratios higher such) ii (or below specified ratios minimum the) i (of greater :below 5 paragraph in forth set criteria on based MMA ,However 5.0%. is ratio capital leverage acceptable minimum the :Ratio Capital Leverage) a( or/and risk of level inordinate an has ,growth significant experiencing or pursuing is bank a if earnings ,management ,quality asset satisfactory-than-less or ,managementsystems risk inadequate .required be may minimum higher a ,liquidity or ratio Capital Based-Risk 1 Tier acceptable minimum the :Ratio Capital Based-Risk 1 Tier) b( inordinate an has ,growth significant experiencing or pursuing is bank a if ,However 6.0%. is ,quality asset satisfactory-than-less or ,systems management risk inadequate or/and risk of level .required be may minimum higher a ,liquidity or earnings ,management ratio Capital Based-Risk Total acceptable minimum the :Ratio Capital Based-Risk Total) c( inordinate an has ,growth significant experiencing or pursuing is bank a if ,However 12.0%. is ,quality asset satisfactory-than-less or ,systems management risk inadequate or/and risk of level .required be may minimum higher a ,liquidity or earnings ,management

8 specified ratios capital with complies bank a whether determine to calculations making Before loan potential for provisions adequate fully) a (reflect to adjusted be must accounts all ,above amortization and depreciation including losses accumulated and operating of off-write) 2 (,losses market current to assets repossessed of downs-write ,profits on taxes for provisions ,expenses ,costs organizational ,expenses preliminary of off-write) 3 (,off written yet not debts bad and ,value .specify may MMA the as items other such) 4 (and ,commissions underwriting and goodwill capital computing for methods new the apply to allowed are banks – Requirements II-Basel 2: ,Initially .MMA the by prescribed manner a in) II-Basel as known commonly (requirements capital establish to” approach indicator basic “the and” approach standard “the use must banks ratio capital leverage a have to allowed be bank a will event no in ,however); I Pillar (requirements Pillar (review supervisory to subject remain will capital s’bank a of adequacy The 5.0%. than less the on depending required be may levels capital higher and ,)III Pillar (discipline market and) II .bank a of activities and profile risk – Profits of Distributions and Shares Capital of Redemption ,Dividends Cash on Restriction 3: capital other or shares capital its of any redeem or ,dividend cash a pay or declare not shall bank a ,profits its of distribution other any make or ,shareholders to payment any make or ,instruments capital the below reserves or capital its in reduction a in result will payment or transfer such if profits of distributions and paid or declared be to dividends Cash .MMA the by set requirements ;auditor external an by certified and reviewed been have that earnings from made be only may .MMA the of approval written prior the with made be may distributions interim ,however a assigning and adequacy capital evaluating of purposes for – Categories and Measures Capital 4: :apply shall categories capital and measures following the ,purposes supervisory for category :are adequacy capital measuring for used ratios the – measures Capital) a ( .Assets Net by divided Capital 1 Tier :ratio capital Leverage • .Assets Weighted-Risk Total by divided Capital 1 Tier :ratio capital based-risk 1 Tier • .Assets Weighted-Risk Total by divided Base Capital :ratio capital based-risk Total • banks ,actions enforcement and responses supervisory of purposes for – categories Capital) b( :follows as categories adequacy capital into grouped be will – capitalized Well) 1 ( ;funded and adequate fully is account losses loan for Provisions • ;8% < ratio capital Leverage • ;10% < ratio capital based-risk 1 Tier • ;15% < ratio based-risk Total • capital or ,order supervisory or corrective ,agreement written any to subject Not • ;MMA the by issued directive

9 and; operations banking commencing since elapsed have years three least At • .assets or loans ,deposits in growth rapid experiencing or pursuing Not• – capitalized Adequately) 2 ( ;funded and adequate fully are account losses loan for Provisions • ;8% > 5% ratio capital Leverage • ;10% > 6% ratio capital based-risk 1 Tier • ;15% > 12% ratio based-risk Total • capital or ,order supervisory or corrective ,agreement written any to subject Not • and; MMA the by issued directive .above) 1)(b (paragraph-sub in defined as" capitalized well "Not • – Undercapitalized) 3 ( ;funded fully not or/and inadequate are account losses loan for Provisions • experiencing or pursuing and 8% and 5% between or (5% < 4% ratio capital Leverage • ;(growth rapid ;6% > 4% ratio capital based-risk 1 Tier • and; 12% < 8% ratio based-risk Total • ,agreement written any of provision related-capital any with compliance in not • .MMA the by issued directive capital or ,order corrective – undercapitalized Significantly) 4 ( ;funded fully not and inadequate materially are account losses loan for Provisions • experiencing or pursuing and 6% and 4% between or (4% < 2% ratio capital Leverage • ;growth rapid ;4% > ratio capital based-risk 1 Tier • and; 8% < ratio based-risk Total • ,agreement written any of provision related-capital any with compliance in Not • .MMA the by issued directive capital or ,order supervisory or corrective – undercapitalized Critically) 5 ( ;funded fully not and inadequate severely are account losses loan for Provisions • 2% > ratio capital Leverage • and; relevant longer no ratios RBC Total and 1 Tier• ,agreement written any of provision related-capital any with compliance in Not • .MMA the by issued directive capital or ,order supervisory or corrective – that determines MMA the if – Reclassifications) c( or ,trends growth ,activities the to due impaired become will bank a of capital existing the) 1 ( ,bank a of profile risk

10 manner a in affairs its conducting is or practices unsound or unsafe in engaging is bank the) 2 ( or ,public general the or depositors of interests the threatens that ,management ,quality asset in weaknesses identified previously corrected not has bank the) 3 ( capital s’bank a downgrade may MMA the then ,risk market to sensitivity or liquidity ,earnings corrective a with comply to bank the require and ,above) b (paragraph-sub in defined category .directive capital a or ,order supervisory or minimum higher maintain to bank a require MMAmay the – Ratios Minimum Higher for Criteria 5: – bank a if ratios ;years three than less operating been has) 1 ;deficiency capital a in resulting losses ,have to expected is or ,has) 2 ,market ,credit of concentrations ,credit whether ,risk to exposure significant has) 3 ;activities traditional-non other from or ,legal ,operational ,liquidity ,rate interest ;assets quality poor of volume ,severe particularly or ,high a has) 4 ;acquisitions through or internally either ,rapidly growing is) 5 ,company holding parent its of condition or activities the by affected adversely be may) 6 or; subsidiaries or associates and policies or structure shareholding ,management ,ownership in deficiencies has) 7 .(management risk for systems .MMA the by determined as ,bank important systemically a is) 8 :are assets sheet-balance-on to applicable weights risk the – Weights Risk 6: ;transit in and vault s’bank the in held) coin and notes (cash - 0% ;Maldives the of MMA the with balances and on claims - by issued securities by secured fully or ,by guaranteed ,on ,thereof portions or ,claims - 3(GoM (Maldives the of Government the ; currency national in denominated banks central and governments central on claims - ;currency that in funded and ;banks central and governments central OECD on claims other - OECD ,by guaranteed or ,of securities by collateralized ,thereof portions or ,claims - and; governments central .bank same the in deposits pledged or cash by secured fully ,thereof portions or ,claims - 3 .unconditional and irrevocable ,affirmed be must it ,weighting 0% for qualify to guarantee a For

11 be may as others or EIB ,ADB ,IBRD (banks development multilateral on claims - 20% collateralized or ,by guaranteed ,portionsthereof or ,claims and) MMA the by approved ;banks such by issued securities ,by the in incorporated banks ,by guaranteed ,thereof portions or ,loans and ,on claims - ;countries OECD banks commercial domestic ,by guaranteed ,thereof portions or ,loans and ,on claims - maturity residual a with OECD the outside countries in incorporated banks other and ;year one to up of -public OECD domestic-non ,by guaranteed ,thereof portions or ,loans and ,on claims - approval prior to cases all in subject ,government central the excluding ,entities sector and; MMA the of .foreign and domestic both ,collection of process in items cash - this in defined as property residential on mortgages priority first by secured fully loans - 50% 4regulation and; authorities government local ,by guaranteed ,thereof portions or ,loans and ,on claims - and; Maldives the of .MMA the by approved if enterprises public on claims - by approval after ,scheme guarantee credit a by guaranteed ,thereof portions or ,claims - 75% ;MMA the Medium and Small the in defined as ,Enterprises Medium and Small on claims - .(06/2013 .no Law (Law Enterprises ;sector private the on claims - 100% banks other and banks commercial domestic ,by guaranteed loans or ,on claims - ;year one over of maturity residual a with OECD the outside incorporated national in denominated unless (OECD the outside governments central on claims - ;(currency that in funded and currency companies commercial on claims and above listed not entities sector public on claims - ;entities sector public by owned ;assets fixed other and equipment and plant ,premises - investment consolidated-non including (investments other and owned estate real - ;(companies other in participations 4 income rental from repayable primarily and by secured loans ,property residential of development speculative for loans Excludes .developments housing finance to loans and ,tenants by occupied majority is that property on

12 and); capital from deducted unless (banks other by issued instruments capital - .capital from deducted those excluding ,assets other all - balance-on corresponding the to applicable weights the by multiplied be shall and items sheet￾balance-off to apply shall below listed factors conversion credit the – Factors Conversion Credit 7: the into instruments particular allocate ,discretion its in ,will MMA The .category asset sheet .instrument the of characteristics the on based below listed categories instrument sheet balance-Off Factor) a( credit of letters standby including guarantees general .g.e (5substitutes credit Direct 100% endorsements and acceptances' bankers and; securities and loans guarantee to used .(acceptances to equivalent ,warranties ,bonds bid and performance .g.e (items contingent related-Transaction 50% .transactions specific to tied credit of letters standby by collateralized credits documentary .g.e (contingencies related-trade-self term-Short 20% .(shipments underlying risk credit where recourse-with-sales assets and agreements repurchase-and-Sale 100% .bank selling with remains which securities and shares paid-partly and deposits forward ,purchases asset Forward 100% .drawdowns specific with commitments represent .facilities underwriting revolving and facilities issuance Note 50% original an with) lines credit ,facilities by-stand formal .g.e (commitments Other 50% year one than more of maturity be can which or ,year one than less of maturity original an with commitments Similar 0% time any at cancelled unconditionally the - contracts derivative similar and options purchased ,swaps ,Forwards :Risk Credit) b( special require contracts derivative similar and options purchase ,swaps ,forwards of treatment ,contracts their of value face full the for risk credit to exposed not are banks because attention if) value positive showing contracts on (flow cash the replacing of cost potential the to only but contract the on ,alia inter ,depend will amounts equivalent credit The .defaults counterparty the on traded Instruments .instrument of type the for prices and rates of volatility the and ,maturity variation cash payment and receipt daily to subject are they where excluded be may exchanges other as factors conversion same the with included are counter the over purchased Options .margin .instruments 5 future a on depends risk the ,however ,If .counterparty the on claim direct a to equivalent is loss of risk the where items Include .factor conversion 50% a to subject be should items the ,counterparty the of creditworthiness the of independent is which event

13 ,swaps basis ,swaps rate interest currency-single include to defined – contracts rate Interest similar and purchased options rate interest ,futures rate interest ,agreements rate forward .instruments forward ,swaps rate interest country-cross include to defined – contracts rate exchange Foreign .instruments similar and purchased options currency ,futures currency ,contracts exchange foreign .excluded be may days calendar 14 exceeding not maturity original an with contracts rate Exchange of purpose the for contracts rate exchange as same the treated are contracts Gold – contracts Gold days calendar 14 exceeding not maturity original with contracts that except risk credit calculating .included are purchased ,swaps ,forwards include to defined – contracts) gold than other (metals Precious and platinum ,silver .g.e (metals precious on based are that contracts derivative similar and options .treatment separate receive contracts such); palladium ,swaps ,forwards include; separately treated are contracts – contracts commodities Other .g.e (metals base ,agriculture ,energy on based contracts derivative similar and options purchased .contracts commodity metal precious-non other any and) zinc and copper ,aluminum derivative similar and options purchased ,swaps ,forwards include to defined – contracts Equity .indices equity on or equities individual on based contracts paragraph in defined instruments the of any in engage that Banks .method exposure Current) c( of cost replacement total the adding) i (by amounts equivalent credit the calculate must above) b( current the capturing thus ,")market-to-marking "by obtained (value positive having contracts all exposure credit future potential for") on-add "the called (amount an adding) ii (then and ,exposure maturity residual by split ,book its of 6amount principal notional total the of basis the on calculated :follows as 6 effective the use must banks ,transaction the of structure the by enhanced or leveraged is amount notional stated the that event the In apparent than rather effective on based are ons-add the that ensure to exposures future potential determining when amount notional .amounts notional

14 Interest Maturity Residual Rate Exchange Precious Equities Rate Metals Other Commodities 10.0% 8.0% 10.0% 1.0% 0.0% less or year One but ,year one Over five than more not years 12.0% 10.0% 12.0% 5.0% 0.5% 15.0% 12.0% 15.0% 10.0% 1.5% years five Over :methods exposure to Notes of number the by multiplied be to are factors conversion the ,principal of exchanges multiple with contracts For 1. .contract the in payments remaining reset are terms the where and dates payment specified after exposures outstanding settle to structured contracts For 2. the to equal set be must maturity residual the ,dates specified the on zero is contract the of value market the that such and year one than more of maturities remaining with contracts rate interest of case the In .date reset next the until time 0.5%. of floor a to subject is factor on-add the ,criteria above the meet which this in columns the of any by covered not contracts derivative similar and ,options purchased ,swaps ,Forwards 3. ."commodities other "as treated be to are matrix the; swaps rate interest floating /floating currency single for calculated be shall exposure credit future potential No 4. .value market-to-mark its of basis the on solely evaluated be shall contracts such on exposure credit .e.i (multiplied be shall amounts the ,above method either using calculated been have amounts equivalent credit Once .category asset sheet-balance-on corresponding the to applicable weight the by) weighted valid to transactionsifsubject net may banks ,MMAdiscretion to Subject) 1(.netting Bilateral) d( obligation an which under agreement an (novation .e.i ,agreements netting bilateral binding and is counterparty a to date value given a on currency of amount specified a deliver to bank a of one substituting legally ,date value and currency same the for obligations other all with combined subject transactions net also may banks) 2 (and) obligations gross previous the for amount single of forms other including ,above) 1 (in covered not netting bilateral of form valid legally any to :has it that MMA the satisfy must bank a ,)2 (and) 1 (cases both In .novation ,obligation legal single a creates which counterparty the with agreement or contract netting a) i( receive to claim a either have would bank the that such ,transactions included all covering of values market-to-mark negative and positive the of sum net the only pay to obligation or the of any to due perform to fails counterparty a event the in transactions individual included ;circumstances similar or liquidation ,bankruptcy ,default :following courts relevant the ,challenge legal a of event the in ,that opinions legal reasoned and written) ii( :under amount net a such be to exposure s’bank the find would authorities administrative and

15 foreign the if ,and chartered is counterparty the which in jurisdiction the of law the - in jurisdiction the of law the under also then ,involved is counterparty a of branch ;located is branch the which and; transactions individual the governs that law the - .netting the effect to necessary agreement or contract any governs that law the - kept are arrangements netting of characteristics legal the that ensure to place in procedures) iii ( .law relevant in changes possible of light the in review under capital calculating when netting for eligible not are clauses away-walk containing Contracts to counterparty defaulting-non a permits that provision a is clause away-walk A .requirements .creditor net a is defaulter the if even all at payment no or ,payments limited make net the of sum the as calculated be must transactions forward netted bilaterally on exposure Credit underlying notional the on based on-add an plus ,positive if ,costs replacement market-to-mark gross the of average weighted the to equal is) ANet (transactions netted for on-add The .principal (AGross (on-add gross to cost replacement current net of ratio the by adjusted on-add gross the and 7 :formula following the through expressed is This .)NGR (cost replacement current AGross0.4 = ANet AGrossNGR*0.6 + for cost replacement gross of level (by divided) cost replacement net of level = (NGR where 8agreements netting enforceable legally to subject transactions ( category the to according weighted be must amounts equivalent Credit – weighting Risk) e( weighting concessionary including ,claims sheet balance-on as way same the in counterparty of or guarantees and cash for 0% .g.e (collateral and guarantees eligible by backed exposures for 20% ;foreign or domestic whether ,banks central and governments sovereign by issued securities ;countries OECD of entities sector public or banks development multilateral by forsecuritiesissued subject and bank the by held be must collateral Cash .)guarantees government local for 50% and unconditional ,irrevocable ,explicit be must guarantees and ,times all at setoff of right legal to most since ,addition In .factors weighting lower the attract to order in enforceable legally and a ,names class-first be to tend ,contracts term-long for particularly ,markets these in counterparties 100% a attract otherwise would which counterparties of respect in applied be may weighting 50% .weight 7 appropriate the by amount principal notional the multiplying by calculated (amounts on-add individual of sum the equals AGross .counterparty one with agreements netting enforceable legally to subject transactions all of) above out set factors on-add 8 Under .agreements netting enforceable legally to subject transactions all for basis aggregate an on NGR the calculate must MMA in used exposure current net the counterparty each for .e.i ,others to exposures current negative net ,approach aggregate the to is NGR the ,approach aggregate the under that Note .zero or cost replacement net the of maximum the is NGR the calculating the to assigned be will amount equivalent credit the that so agreement netting enforceable legally each to individually applied be .category weight risk counterparty appropriate

16 derivative of positions hedged-un for risk market – contracts derivative :risk Market) f( foreign For .weight 100% a allocating by ratio capital weighted-risk the in included is contracts long all of sum the of higher the to factor weighting this apply must banks ,contracts rate exchange .positions short all of sum the or positions exchange foreign theminimumcapitalrequirements with comply failsto which bank Any –Plan Restoration Capital 8: the by required be may that ratio minimum higher any with or ,above 1 paragraph in forth set Such .plan restoration capital detailed a MMA the to submit shall ,above 5 paragraph under MMA be must and ratios capital required the with comply will bank the when and how state must plan specified is time shorter a unless MMA the by request written following days 60 within submitted .deficiency capital the of severity the to due the in adequacy capital of respect in returns submit shall bank Each – Requirements Reporting 9: .prescribe may MMA the as frequency and form MEASURES CORRECTIVE :IV PART associated person other any or ,administrators its ,bank a If – sanctions and measures Remedial 1: and instructions the with comply to fails or ,regulation this of provision any violates bank the with corrective the of more or one any take may MMA the ,regulation this in requirements reporting and measures Such .Act the in provided as penalties administrative any impose or measures – following the of all or any ,include may penalties ;bank the to warning a Issue) a ( and unsafe any and violations correcting for bank the with agreement informal an into Enter) b ( ;conditions and practices unsound to further and actions particular from desist and cease to it requiring bank the to order an Issue) c ( ;conditions and practices unsound and unsafe any and violations correct to actions affirmative take ;funds capital additional inject to directors of board the Require) d ( foreign any on limitations imposing including bank the of activities of scope the Restrict) e ( borrowing ,deposits of acceptance ,investments of making ,credit of granting ,activities exchange ;appropriate deem may MMA the as activities other or ,money of ;MMA the of facilities credit the to access Suspend) f ( ;officers executive or directors any of removal or suspension the Require) g ( ;conservator a or advisor an Appoint) h ( or officers executive ,directors its of any or bank the on penalty administrative an Impose) i ( ;managers executive ,directors any ,allows law the as ,from restitution seek and liable personally Hold) j ( or; bank the of shareholders major or officers .license s'bank the revoke or Suspend) k ( ,Stability Financial of Head the to addressed be should regulation this to relating Questions .Authority Monetary Maldives

17

ގެޒެޓުގެ އިޢުލާންތަކާއި ދެންނެވުންތަކާއި އެންގެވުންތައް ހިލޭ ދުރަށް ފޮނުއްވާ ގަޑިތައް .1 .2 އާދީއްތައިން ބުރާސްފަތި ދުވަހުގެ ނިޔަލަށް - ކޮންމެ ދުވަހަކު މެންދުރު 12:30 ން 1:00 އަށް ، ހަވީރު 3:30 ން 4:00 އަށް ހުކުރު ދުވަސް - ހެނދުނު 11:00 ން 11:30 އަށް ، ހަވީރު 3:30 ން 4:00 އަށް ހޮނިހިރު ދުވަސް - ހަވީރު 3:30 ން 4:00 އަށް ހަފުތާގެ ކޮންމެ ރެއަކު 7:00 ން 7:45 އަށް .air on friend your...