CNI News
2 July 2024
Seven banks that lent housing loans more than the amount designated by the Central Bank of Myanmar would be taken action against, reported the State Administration Council (SAC) on the night of 1st July.
The Central Bank of Myanmar allowed housing loans for a term of more than three years, depending on the total banking loans, with a view to offering a new loan system for private banks and creating opportunities for property ownership by the people, stated the SAC.
However, Yoma Bank, Myanmar Citizens Bank, Ayeyarwady Bank, Small and Medium Enterprises Development Bank, UAB Bank, Myanmar Metro Bank, Construction, Housing & Infrastructure Development Bank were checked and found that they granted housing loans beyond the stipulations of the CBM, said in the statement released by the SAC.
YOMA Bank grants loans exceeding 11 per cent than the fixed amount of the Central Bank of Myanmar.
Myanmar Citizenship Bank grants loans exceeding 8.94 per cent than the fixed amount of the Central Bank of Myanmar.
AYA Bank grants loans exceeding 1.96 per cent than the fixed amount of the Central Bank of Myanmar.
SME Development Bank grants loans exceeding 1.01 per cent than the fixed amount of Central Bank of Myanmar.
UAB Bank grants loans exceeding 3.38 per cent than the fixed amount of Central Bank of Myanmar.
Myanmar Metro Bank grants loans exceeding 0.39 per cent than the fixed amount of the Central Bank of Myanmar.
CHID Bank grants loans exceeding 16.34 per cent than the fixed amount of the Central Bank of Myanmar.
The officials concerned would supervise the return of the loans exceeding the fixed amount of CBM from the banks within the fixed time and officials from these seven private banks would be taken action against in accordance with the law, said in the statement.
The seven private banks would be fined under Section 154 of the Financial Institutions Law, and the relevant officials of CBM would also be taken action against for their weakness in the supervision of the private banks, said in the statement.
