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

> In May 2025 the Maldives Monetary Authority gave MFLC a pre-operational permit to become Maldives Finance and Leasing Bank. By its December 2025 accounts it still took no deposits. What the permit means, and what MFLC's numbers say about it as a lender.

Source: Maldives Real Estate News, published by Binga Properties. URL: https://news.binga.mv/mflc-banking-permit-what-it-means
Published: 2026-10-18T07:32:59.258Z · Updated: 2026-10-18T07:32:59.258Z · Event date: 2026-10-18

**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

| | 31 Dec 2024 | 31 Dec 2025 | 30 Jun 2026 |
|---|---|---|---|
| Net loans | MVR 651.7m | MVR 771.2m | MVR 832.4m |
| Shareholders' funds | MVR 360.7m (total capital) | MVR 404.0m (total capital) | MVR 425.4m |

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.*

## Sources
- atolltimes.mv/post/business/12460 (Atoll Times, 28 May 2025) (https://atolltimes.mv/post/business/12460 (Atoll Times, 28 May 2025))
- edition.mv/business/41518 (The Edition, 28 May 2025) (https://edition.mv/business/41518 (The Edition, 28 May 2025))
- www.mflc.mv/announcements/maldives-monetary-authority-(mma)-grants-banking-license-to-mflc (MFLC press release, 2025) (https://www.mflc.mv/announcements/maldives-monetary-authority-(mma)-grants-banking-license-to-mflc (MFLC press release, 2025))
- www.mflc.mv/_files/ugd/1bb910_44ad8fae6ac843d8bb980e783c32dc5b.pdf (MFLC statement of condition, 31 December 2025) (https://www.mflc.mv/_files/ugd/1bb910_44ad8fae6ac843d8bb980e783c32dc5b.pdf (MFLC statement of condition, 31 December 2025))
- www.mflc.mv/_files/ugd/a2d864_dcdc73b927df41d198c5bff1eca78753.pdf (MFLC Q2 2026 highlights) (https://www.mflc.mv/_files/ugd/a2d864_dcdc73b927df41d198c5bff1eca78753.pdf (MFLC Q2 2026 highlights))
- www.mflc.mv/about (MFLC About, read 18 October 2026) (https://www.mflc.mv/about (MFLC About, read 18 October 2026))

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