Circular CN/2025/11472: Submission of Bank's Strategic Plan and Budget

بسم الله الرحمن الرحيم

[Logo] MALDIVES MONETARY AUTHORITY

Circular no: CN/2025/11472

25th May 2025

To: All banks

Dear Sir/Madam,

Submission of Banks’ Strategic Plan and Budget

All banks are required to submit their strategic plan by 31st December of each year and resubmit the plan by the same date whenever material revisions are made during the plan’s implementation period. The strategic plan should at minimum cover the details prescribed in section A below. Additionally, banks must submit their annual budget which at minimum shall include the details under section B, and the implementation plan for the forthcoming year (section A(4)) by 31st December each year.

In this regard, the strategic plan and budget submitted by the banks shall cover the following details, at a minimum.

A) The strategic plan shall include the following:

1. Summary

   • Provide an overview of the strategic goals, major initiatives, financial projections and operational priorities.

2. Strategic Goals/Targets and Objectives (1-5 years)

   • Outline the goals that in both short term (within the forthcoming year) and the medium and long term (2-5 years). These goals should be clearly defined and relevant to the bank’s business plan and operating context for each of the following areas listed below: i. Product/Customer Objectives: Description of the bank’s product and service offerings along with goals for customer satisfaction and retention. ii. Operational Objectives: Details of goals for operational efficiency and effectiveness. iii. Risk Management Objectives: Details of goals for risk management and mitigation. iv. Innovation Goals: Outline the bank’s approach to adopting new technologies, including digital banking solutions, automation, cybersecurity, and data analytics. v. Human Resources and Talent Management: Highlight strategies for talent acquisition, retention, and professional development including localization plans where applicable. vi. Sustainability Initiatives: Strategies for sustainability and environmental responsibility.

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3. Financial projections and Key Performance Indicators (KPIs) for the forthcoming 1-5 years

   • Projected income statement
   • Projected balance sheet
   • Fundamental assumption for projections
   • Projected capital expenditure
   • Key Performance Indicators

4. Implementation Plan (for the forthcoming year only)

   • Provide the details of the action plan with timelines to achieve the strategic objectives for the forthcoming year, covering the following at a minimum.

Strategic Goals	Action Plan/Steps	Timeline

B) The budget for the forthcoming year shall include the following:

1. Key Assumptions:
   • Include the key business growth targets, credit and deposit growth rates / volumes.
2. Income Statement
   • Should cover interest income, interest expense, net interest income, non-interest income, operating expenses, provision for loan losses, net profit before and after tax.
3. Balance Sheet
   • Should cover cash & balances with banks, loans and advances, T-bills and T-bond investments, other major investments, customer deposits, borrowings, capital and reserves.
4. Capital Expenditure Projections
   • Should include planned investments in infrastructure, IT systems, etc.
5. Target Key Financial Indicators / Ratios
   • Should include capital adequacy ratio, ROA, ROE, NPL ratio, deposit to loan ratio.

This Circular supersedes and replaces Circular no: CN-BSD/2013/10 dated 09th December 2013.

Yours sincerely,

[Signature] Mohamed Muaz Managing Director, Financial Stability

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