Bangladesh Bank Proposes Maldives Branches for Remittances
The initiative aims to improve formal banking access for over 100,000 Bangladeshi workers living in the Maldives.
Updated on Oct. 22, 2026 in Financial Services
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Bangladesh Bank has submitted a proposal to the Maldives Monetary Authority to establish domestic bank branches and new currency settlement mechanisms. This move seeks to facilitate formal remittance transfers for the large expatriate population.
Why it matters
The proposal addresses the current reliance on informal markets, which forces workers to navigate currency restrictions and high costs when transferring their earnings. Expanding banking services is intended to improve access and streamline financial flows for migrant laborers.
Bangladesh received $38.05 million in remittances from the Maldives during the first three months of the current fiscal year. Over 100,000 Bangladeshi citizens currently work in the Maldives.
The players
Bangladesh Bank
This is the central bank of Bangladesh responsible for managing monetary policy and banking regulation.
Maldives Monetary Authority
The central bank of the Maldives acts as the primary financial regulatory body for the nation.
Md Mostaqur Rahman
He serves as the Governor of Bangladesh Bank and is overseeing the expansion initiative.
The details
The bank suggests utilizing Asian Clearing Union arrangements, rufiyaa-denominated payments, and bilateral swaps to overcome existing local currency hurdles. Major financial institutions including BRAC Bank and National Bank have already conducted initial feasibility studies regarding potential operations in the region.
Timeline
2024 saw 200,000 total foreign workers in the Maldives.
FY25 recorded $141.1 million in total remittances.
FY 2025-26 recorded $118 million in total remittances.
October 8, 2026, marked the date Bangladesh Bank Governor Md Mostaqur Rahman sent the proposal letter.
Market Landscape
The proposal aligns with regional financial integration trends where nations establish closer banking ties to manage labor-driven capital flows. By seeking to compete with existing branches from India, Sri Lanka, and Pakistan, Bangladesh aims to secure a greater share of the local banking sector.
Expatriate workers may soon gain access to more reliable and affordable formal banking channels for sending money home. This development could reduce the financial burden of transfer fees currently incurred through informal currency exchanges.
The takeaway
Formalizing remittance channels often reduces the risks associated with informal money transfers for migrant workers. Establishing direct banking presence remains a key strategy for nations looking to stabilize capital inflows from their diaspora communities.
Further reading
Learn more about the latest trends in global Financial Services.
Source note: This article includes information reported by Bangladeshpost.
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