Economy Myanmar Microfinance Bank awaits Central Bank’s permit to commence daily operations The Myanmar Microfinance Bank (MMB), opened on 2 June 2013 at the Central Department of Cooperative Economy, is now awaiting the Central Bank’s approval to commence its operations, according to U Khin Maung Aye, chairman of Central Bank as well as a member of MMB. The bank aims to provide micro financing to low-income citizens to increase the country’s middle class. U Phay Myint, Director at Cooperative Bank, said that according to U Kyaw San, Union Minister of the Ministry of Cooperatives, the interest rate of MMB is expected to be set at 30% per year and only 20,000-30,000 Kyats loans will be extended per person. Shares are being sold to the public at 100,000 Kyats per share with many members of the banking community reportedly purchasing shares. According to unconfirmed sources, a total of three additional banks, Nay Pyi Taw City Development Bank, a bank established by a gems and jewelry business, and a bank established by a construction firm are to be established. However, the Central Bank has not yet officially confirmed these new banks. In June 2013, the government unveiled its plans to further reduce the Central Bank’s interest rates from 10% to 6% for loans and 8% to 4% for savings. Figures from the Central Bank of Myanmar show that Myanmar has 4 state-owned banks and 20 private banks currently.
Posted on: Fri, 26 Jul 2013 04:50:37 +0000
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