BML protects the rights of all stakeholders, not just the Government: CEO Shareef

The CEO of the Bank of Maldives (BML), Mohamed Shareef, today stated that despite criticism that the bank simply complies with every request made by the government, BML's true mission is to protect the rights of all individuals and entities who use its services.

Speaking at a ceremony held this morning at Barceló Nasandhura to launch new BML services, Shareef noted that the bank is shared by the government and thousands of Maldivian citizens, and is intertwined with every industry, business, and individual in the Maldives. He also expressed the view that the various criticisms aimed at the bank must be addressed.

"However, as the most senior person entrusted with running the bank, I believe it is necessary to use opportunities like this to reveal the truth about such rumors," Shareef stated.

Shareef mentioned that the most common criticism recently has been the allegation that BML does whatever the government asks of it. President Dr. Mohamed Muizzu also attended the ceremony.

"To this, I would like to say that we have not forgotten the noble purpose for which this bank was established. We are fulfilling the role of a bank that protects the rights of its depositors and shareholders," he declared.

Shareef argued that the purpose of any government is to work towards national development and the benefit of the people. He added that a strong economic activity or capacity in the economy is one of the most important factors for achieving these goals. Since BML is closely linked to the Maldivian economy, he said that the bank is affected by both economic shocks and advancements.

He pointed out that a comparison of the Maldives' GDP growth and BML's profit growth from 2019 to 2024 clearly demonstrates this correlation.

Shareef noted that statistics show the extent to which the Maldivian economy and the bank's financial status declined during the COVID-19 pandemic and the subsequent recovery. He stressed that the relationship between BML and the Maldivian economy has a very strong and positive correlation.

"Yes, a correlation of 0.96. It is only slightly short of the positive perfect correlation of +1," he elaborated.

Shareef stated that in the context of the Maldivian economic structure, BML's total assets account for 38% of the entire Maldives' GDP. This, he said, highlights that the bank is not just a financial institution but a fundamental pillar of the economic structure.

He further explained that close to half of all economic activity in the Maldives is based upon and driven by government initiatives. Therefore, working closely with the government as the national bank is a strategically important and necessary measure for the bank.

"The bank's participation, response, and cooperation in the government's efforts to advance the economy are not done for the sake of any specific bias. It is because of the necessary and interdependent relationship that exists between BML and the Maldivian economy," he said.

Shareef concluded by stating that the bank's stability is essential for economic stability, and the bank cannot successfully sustain itself without a robust economy. He affirmed that BML, as the national bank, will continue to act in the best interest of the Maldivian people.