The Central Bank of Myanmar held a meeting with private banks on the financial progress of Myanmar’s banking sector by the end of 2022-2023 FY, payment issues with foreign banks and compliance with rules and regulations for money laundering in Nay Pyi Taw on 31 March at the hall of the CBM. It was attended by CBM Governor, Deputy Governors, directors-general, deputy directors-general and Chairpersons as well as chief executive officers of private banks.
During the meeting, CBM Governor Daw Than Than Swe discussed the following points;
- In discussing the progress of Myanmar's banking sector for three years from 2021 to 2023, the savings of private banks saw an increase of 14.42 per cent and 7.81 per cent in loans compared with the previous financial years.
- The Credit to GDP Ratio is 28 per cent. The saving of banks at the CBM and the balance of private banks shows an increase of 35 per cent and 36 per cent compared with last year. The Turnover of the Interbank Market increases K1,166 billion, improving 98 per cent to compared to last year.
- The turnover between the foreign banks and private banks get higher. The short-term loans also get improved in trade sector.
- The banks get back their loans as the economy and circulation of businesses are good again, and the failure of capital/interest repayment reduces for conducting Restructuring and Rescheduling.
- The bank branches opened in border areas need to prevent illegal transactions. The banks are required to focus on monitoring as most of money laundering and financial assistance to terrorists made transactions via mobile phones.
- Banks need to manage properly to use local currencies depending on currency diversification, reducing the use of dollars. As we have sought approval from the Central Bank of India for the use of Rupee and Kyat for trade, we would clarify soon the plans for further trade sector in addition to Yuan/Thai Baht for trade.
Then, the Governor of CBM urged all private banks to work together in unity for good banking system and stable development, serve the populace with good banking services for long-run banking system, improve risk management, and run in accordance with rules and regulations after combining work security and achievement in harmony.
Source: Global New Light of Myanmar Newspaper (1-4-2023)
- Within three years from 2021 to 2023, the savings of private banks saw an increase of 14.42 per cent and 7.81 per cent in loans compared with the previous financial years.
- The turnover between the foreign banks and private banks get higher. The short-term loans also get improved in trade sector.
- Banks need to manage properly to use local currencies depending on currency diversification, reducing the use of dollars.
- As we have sought approval from the Central Bank of India for the use of Rupee and Kyat for trade, we would clarify soon the plans for further trade sector in addition to Yuan/Thai Baht for trade.