Maldives : Financial Sector Assessment Program-Technical Note on Financial Safety Net and Crisis Management Arrangements.

Format:

Book

Government document

Author/Creator:

International Monetary Fund. Monetary and Capital Markets Department.

Series:

IMF Staff Country Reports; Country Report ; No. 2024/020

IMF Staff Country Reports

Language:

English

Physical Description:

1 online resource (33 pages)

Other Title:

Maldives

Place of Publication:

Washington, D.C. : International Monetary Fund, 2024.

Summary:

This paper highlights technical note on financial safety net and crisis management arrangements in Maldives. Maldives legislation includes important elements of a financial safety net and crisis management framework but there are areas for streamlining and improvement. The Maldives Banking Act (MBA) provides tools for the Maldives Monetary Authority (MMA) to implement early intervention and resolution measures. However, there are shortcomings that need to be addressed to enhance both frameworks and align them with international good practices. The triggers for initiating resolution should be strengthened including a forward-looking perspective. The governance trigger should be enhanced by providing links to bank’s capacity to maintain adequate systems and controls and to effectively manage its risks. The requirement for the delivery of a conservator’s report should not be a prior requirement to implementing resolution powers, as this may jeopardize the timely implementation of effective resolution actions. The MBA should be amended to empower the MMA to trigger resolution and for resolution powers to be applied immediately for a bank deemed nonviable or likely nonviable.

Notes:

Description based on print version record.

ISBN:

9798400266317