Bank of Maldives
Encyclopedia
Bank of Maldives is the national
(and the leading) bank
of the Maldives
, established on November 11, 1982. The main business of the Bank is retail banking
, in addition to handling development
banking activities in all the atolls
. Their services include Electronic banking, credit card
s and Debit card
s.
Presently the bank has seventeen branch
es. Twelve of these branches are located in different atolls
of the country. Four out of seventeen are located in Malé
. The remaining one is located in Malé International Airport
.
company of the Government of the Maldives and International Finance Investment Company, IFIC. Until December 31, 1992, the Bank was managed by IFIC Bank Limited.
During the tenth year of the Bank, the Government of Maldives decided not to renew the Management Contract
with IFIC. IFIC Bank was requested, by the Maldivian government, to reduce the shareholding
and also the number of representatives in the Board. Consequently IFIC decided to dispose of its entire shares and terminate its relations with the Bank with the expiry of the Management Contract on December 31, 1992.
On November 14, 1992, the Maldivian government purchased 40% of the shares held by IFIC Bank Ltd. As a result, 80% of the share capital was owned by the Government, while the remaining 20% of the share capital was sold equally to the State Trading Organization
and Maldives Transport and Contracting Company respectively.
In December 1992, the Government decided to sell the Bank's shares to the general public. With this decision, Bank of Maldives became a public company on January 1, 1993. It is now owned by the people and the Government of the Maldives.
National bank
In banking, the term national bank carries several meanings:* especially in developing countries, a bank owned by the state* an ordinary private bank which operates nationally...
(and the leading) bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
of the Maldives
Maldives
The Maldives , , officially Republic of Maldives , also referred to as the Maldive Islands, is an island nation in the Indian Ocean formed by a double chain of twenty-six atolls oriented north-south off India's Lakshadweep islands, between Minicoy Island and...
, established on November 11, 1982. The main business of the Bank is retail banking
Retail banking
Retail banking is banking in which banking institutions execute transactions directly with consumers, rather than corporations or other banks. Services offered include: savings and transactional accounts, mortgages, personal loans, debit cards, credit cards, and so forth.-Types of...
, in addition to handling development
Economic development
Economic development generally refers to the sustained, concerted actions of policymakers and communities that promote the standard of living and economic health of a specific area...
banking activities in all the atolls
Atolls of the Maldives
The Maldives are formed by a number of natural atolls plus atolls in the form of a few islands and isolated reefs today which form a pattern stretching from 7 degrees 10' North to 0 degrees 45' South....
. Their services include Electronic banking, credit card
Credit card
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...
s and Debit card
Debit card
A debit card is a plastic card that provides the cardholder electronic access to his or her bank account/s at a financial institution...
s.
Presently the bank has seventeen branch
Branch
A branch or tree branch is a woody structural member connected to but not part of the central trunk of a tree...
es. Twelve of these branches are located in different atolls
Atolls of the Maldives
The Maldives are formed by a number of natural atolls plus atolls in the form of a few islands and isolated reefs today which form a pattern stretching from 7 degrees 10' North to 0 degrees 45' South....
of the country. Four out of seventeen are located in Malé
Malé
Malé , is the capital and most populous city in the Republic of Maldives. It is located at the southern edge of North Malé Atoll . It is also one of the Administrative divisions of the Maldives. Traditionally it was the King's Island, from where the ancient Maldive Royal dynasties ruled and where...
. The remaining one is located in Malé International Airport
Malé International Airport
Ibrahim Nasir International Airport , more commonly known as Malé International Airport, previously known as Hulhulé Airport, is the main international airport in the Maldives...
.
History
Its operation began as a joint ventureJoint venture
A joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...
company of the Government of the Maldives and International Finance Investment Company, IFIC. Until December 31, 1992, the Bank was managed by IFIC Bank Limited.
During the tenth year of the Bank, the Government of Maldives decided not to renew the Management Contract
Contract
A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...
with IFIC. IFIC Bank was requested, by the Maldivian government, to reduce the shareholding
Shareholder
A shareholder or stockholder is an individual or institution that legally owns one or more shares of stock in a public or private corporation. Shareholders own the stock, but not the corporation itself ....
and also the number of representatives in the Board. Consequently IFIC decided to dispose of its entire shares and terminate its relations with the Bank with the expiry of the Management Contract on December 31, 1992.
On November 14, 1992, the Maldivian government purchased 40% of the shares held by IFIC Bank Ltd. As a result, 80% of the share capital was owned by the Government, while the remaining 20% of the share capital was sold equally to the State Trading Organization
State Trading Organization
The State Trading Organization or STO is a public company with 92.29% of the shares owned by the Maldivian Government with the rest 7.71% being held by the public after the IPO a couple of years ago...
and Maldives Transport and Contracting Company respectively.
In December 1992, the Government decided to sell the Bank's shares to the general public. With this decision, Bank of Maldives became a public company on January 1, 1993. It is now owned by the people and the Government of the Maldives.