Is MFLC a bank yet? What its 2025 permit means for borrowers

Maldives Finance and Leasing Company (MFLC) has been a licensed finance company since 2002. It began as an initiative of the International Finance Corporation (IFC) and the Maldives Monetary Authority (MMA). Since April 2014 it has been owned by Tree Top Investments, with Champa Brothers. In May 2025 it took a step towards becoming a bank.

The permit

On 19 May 2025 the MMA issued MFLC a pre-operational permit to convert into a Tier 1 bank, to be called Maldives Finance and Leasing Bank. MFLC announced it as a banking licence. It said it would be the first financing company in the Maldives to become a licensed bank, and the first bank fully owned by a local private company.

A pre-operational permit is a start, not the finish. MFLC must meet the MMA's conditions before it can offer banking services. Its accounts to 31 December 2025 show no deposits: it still funds itself through borrowing and its own capital. Until that changes, treat it as a finance company, not a bank.

What its numbers say

At June 2026 MFLC reported:

• a non-performing loans ratio of 0.04%;
• a capital adequacy ratio of 46.84%, a large cushion of its own capital against its lending.

Why a borrower might care

• Funding shapes lending. A finance company that cannot take deposits lends from borrowed money and capital. That tends to mean shorter terms and higher equity, as MFLC's five-to-ten-year home loans show.
• A bank licence could change its products. If MFLC begins banking, its home financing terms may change. Check the current terms when you apply.
• A well-capitalised lender is a sound counterparty for a multi-year loan, whatever its label.

As published by MFLC on 18 October 2026. MFLC does not publish its rates; ask for them in writing. General information, not financial advice.