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

January 19, 2024

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Format: Chicago

Maldives: Financial Sector Assessment Program-Technical Note on Financial Safety Net and Crisis Management Arrangements, (USA: International Monetary Fund, 2024) accessed November 21, 2024

Summary

Maldives legislation includes important elements of a financial safety net and crisis management framework but there are areas for streamlining and improvement. Shortcomings in the early intervention and bank resolution frameworks need to be addressed, including internal arrangements on the escalation process from the exercise of the MMA’s power to take enforcement actions through to the initiation of resolution. The overall design of the resolution tools is complex -the MBA includes different mechanisms for the same resolution tools- and requires streamlining. MMA should develop an effective emergency liquidity assistance framework. Deposit insurance system should be enhanced.

Subject: Bank resolution, Bank resolution framework, Bridge bank, Crisis Prevention, Financial crises, International organization, Lender of last resort, Monetary policy

Keywords: A. depositor protection, Bank resolution, Bank resolution framework, Bridge bank, Capital market development authority, Crisis prevention, Deposit insurance regulation, FSAP assessment's finding, Global, IMF-World Bank Financial Sector Assessment Program, Inter-agency arrangement, Lender of last resort, Maldives banking Act, Staff team of the International Monetary Fund

Publication Details

Pages:

33
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2024/020
Stock No:

1MDVEA2024002
ISBN:

9798400266256
ISSN:

1934-7685

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