Minister of Economic Development Fayyaz Ismail has stated the financial sector is in need of additional banks to cater to the growing demand.
At a conference held to mark World Tourism Day, responding to a question from the audience about funding for liveaboards, Minister Fayyaz claimed the SME Bank does not have the capacity to cater to the needs of big investments. He further said the government needs the assistance of banks in the financial sector to solve the problem.
The economic minister also highlighted while the banks operating in Maldives generates huge profits, the benefit to the public form the banks is relatively insignificant. Fayyaz specially criticised highlighted Bank of Maldives (BML) for how it generates profits without major contributions to benefit the public. He demanded BML to reduce interest rates for loans it issues and focus more on economic development. He also said the government is working to introduce new banks to make the market more competitive.
The government has established SME Development Finance Corporation (SDFC), a government funded bank for SMEs, in an effort to develop small to medium businesses. The bank has issued over USD 64 million in loans.