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BML maintains rates despite Federal Reserve interest rates hike

Bank of Maldives (BML) has stated that it has maintained rates despite the Federal Reserve hiking interest rates nine times in the past year. The statement was made by Managing Director Karl Stumke while addressing shareholders at the 40th Annual General Meeting (AGM).

At the event, Stumke highlighted the future vision and strategy of BML, which is built on the three core pillars of treating customers fairly, digitalisation, and sustainability. He said the bank has introduced products and services that have been well received by customers and plans to change many manual products and services while increasing security controls and digital support platforms.

Additionally, Stumke noted that the Federal Reserve has raised interest rates nine times in the past year but BML has not raised rates in the Maldives. Instead, the bank has managed the increased costs after considering the difficulties faced by customers due to interest. He also said that the interest rate on student loans has been reduced to 5% and the monthly interest charged on outstanding loans has been reduced to 2%.

Speaking about the future of BML, Stumke said the bank will have to face competitors but will continue to work to be the bank of choice in the Maldives. He said the bank should explore overseas markets and new avenues to generate more revenue, adding that its success will be measured by changing customers from having to bank with BML to choosing to do it.