CNI News
11 July 2024
Although private banks could perform separately and freely, because some of them violated rules and regulations and encroached the country's economic policies, they were taken decent action against, said Lt-Gen Aung Lin Dwe, secretary of the State Administration Council (SAC).
He said the above when patrons and chairpersons from private banks and secretary, associate secretary of the SAC, Union Home Minister, Central Bank of Myanmar and Deputy PM discussed matters relating to banking industry.
Private banks were responsible to protect the interests of depositors while they must perform for the stability, security and integrity of financial system. So, the government, the Central Bank and private banks must cooperate, said Lt-Gen Aung Lin Dwe.
While top officials of the SAC were meeting with bankers on 10th July 2024
The needs of private banks were met by the national government and the Central Bank while private banks must abide by the rules and regulations in accordance with international norms; in carrying out business activities, monopoly and price speculation must be prevented because they could hurt the public interests; in the same way, if violations of existing rules and regulation as well as any legitimate procedure hurt the national government's finance and property, culprits would be taken action against in accordance with relevant existing laws, he said.
"Because our country is using a market economy system, the Central Bank and private banks can perform separately and freely. But because violations of the rules and regulations are encroaching the economic policies of the State, the national government is taking decent actions." said Lt-Gen Aung Lin Dwe, secretary of the SAC.
Moreover, it was necessary for the people so as not to make unnecessary withdrawals of large sums of money because they were too much worried about pieces of news coming from rumors as well as private banks were wanted to take serious action in order to widely use the card and e-Banking systems, he added.
While seeing private banks that have been taken action against
Yoma Bank, Myanmar Citizens Bank, Ayeyarwady Bank, SMEs Development Bank, UAB Bank, Myanmar Metro Bank and Construction, Housing and Infrastructure Development Bank were taken action against by the SAC on 1st July because they were found to have lent housing loans more than amount designated by the Central Bank of Myanmar.
After that the people became excessively concerned and because they are making withdrawals from their bank deposits, banks only are issuing limited amounts of money.
Because of the lack of trust among the public, it was very important to the SAC to regain the public trust, and only if public trust is gained, would social economy and banking systems be strengthened again, pointed out business people.
