The Central Bank of Myanmar (CBM) has urged small and medium enterprises (SMEs) to transform themselves, so they can procure loans from private banks, said U Soe Thein, Deputy Governor of CBM.
The CBM is encouraging private banks to develop basic banking services of providing loans, he added. He was responding to questions raised by MP U Kyaw Htwe of Yangon Region Constituency (8) at the Amyotha Hluttaw meeting in Nay Pyi Taw yesterday.
MP U Kyaw Htwe asked the CBM how it had laid down policies for establishing private banks, if the incumbent government had a plan to give more private banks permission to operate and about the situation of leasing loans from private banks to SMEs in the country.
According to statistics up to December 2017, private banks granted Ks319.228 billion in loans to the agriculture and livestock breeding sector, making up 1.73 per cent of the total loans granted to the private sector.
SMEs in the country got loans amounting to Ks868.733 billion from private banks in the same period, comprising 4.71 per cent of the total loan given to the private sector.
Regarding permission given to open more private banks, the Deputy Governor said 24 private banks were operating in the country, and the CBM was scrutinising another five banks that had applied for permission to operate.
The number of private banks currently operating in the country and those that have applied are enough to operate Myanmar’s financial services, he added.
Besides this, mobile banking services are becoming popular in Myanmar, and the banking sector is developing, he noted.
“As mobile banking services are effective and can reach areas where no banks have been established, the CBM has suspended granting of permissions to open more private banks now,” said U Soe Thein.
Myo Thu Hein, Hmwe Kyu Zin (Myanmar News Agency)