The Monetary Authority of Maldives (MAM) has amended its rules to allow the President to appoint political appointees to the boards of banks and financial institutions.

According to the amendment to the Corporate Governance Rules of Banks, Insurance Companies and Financial Companies, political office bearers other than cabinet ministers, heads of independent institutions and senior political party officials can be appointed to the boards of banks, insurance companies and financial services companies.

The MMA has gazetted the amendments to the rules today. The amendment will come into force from the date of gazette notification.

Previously, the Corporate Governance Rules for Banks, Insurance Companies and Financial Companies stated that no person appointed by the President to the government or a government department can be appointed to the board of a bank, insurance or finance company.

The MMA has amended the rules regulating corporate governance of banks at a time when the agency has abolished the post of assistant governor, created the post of managing directors and announced the recruitment of five persons for each post. The term of office of the managing directors is five years with a salary ranging from MVR 50,000 to MVR 55,000.