The role of Private Banks in the development of the Nation

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  • By Khin Maung Win
  • The Oxford Business Group made a remark in the 2017 Report on Myanmar that the main difficulty of the small-plot farmers is the inability of securing loans from banks. The report also pointed out the fact that farmers hardly get the loans in time for growing. According to that 2017 Report, it is said that the rate of obtaining bank service is very low in Myanmar. It said 90% of the total population is out of the bank service. Actually the report highlighted that the majority of people without any connectivity with banking services is undesirable for the development of the country. A strong banking sector is sine qua non for the development of the country.
    In the midst of the present unsatisfactory circumstances in the banking sector, State Counsellor, Daw Aung San Suu Kyi met with the Chairmen of the 22 private banks and other responsible personnel on 15 August at the meeting hall of the Ministry of the State Counsellor’s Office. According to news media reports, the matter regarding mortgaging money from banks with farms as co-lateral is also included in the agenda of the discussion. Moreover, the discussion over the role of banks in the development of small and medium enterprises was also made. Apart from those discussions, the policy of the Central Bank of Myanmar and the relationship between the Central Bank and private banks were also discussed at the meeting. To put in a nut shell the role of banks in the development of the country was the main subject discussed in the meeting.
    According to the news report, the State Counsellor will meet again with responsible personnel including the chairmen of the private banks in coming September. It is understood that the discussion in the meeting will boost the harmonious cooperation between the private banks and the Central Bank of Myanmar. The endeavour led by the State Counsellor to gain the harmonious cooperation between the Central bank and the private banks can be denoted as a significant step towards the economic development of Myanmar in future. It is advised that the private banks instead of working only for their self-interest should contribute their expertise and good ideas to develop the country.
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