CBM denies rumours about bankruptcy of two banks

Writer: 
Phyo Wai

 

Action will be taken against the person that spreads the rumor that five public companies and two private banks would go bankrupt, said Win Thaw, Director General of the Central Bank of Myanmar.

This comes after the post of facebook user "Kyaw Swe" goes viral on social meida. The collapse of banks may hamper the country’s economy. Rumours about bank collapsing circulate every year. Even strong banks may collapse when there are bank runs.

Win Thaw wrote on Facebook that the government is trying to overcome many challenges in implementing the plans for economic development. At a time when the government has stepped up its efforts to solve crisis and problems in the economic sector by different means, there are spreads of false rumours that may mislead the public, hamper economic development and enable the public to have no trust in private banks and companies.

The Central Bank is working to promote the role of State-and private-owned banks and to make them more competitive in accordance with standards practiced by international banks step by step. The Central Bank issued regulations for capital, assets, huge debts and liquidity ratios, in accord with the Monetary Organizations Law (2016).

According to the latest development, financial statements of banks are improving thanks to the systematic inspections and supervisions of the Central Bank, the extension of organizational set-up, the fixing of errors and the appointments of foreign experts.

The public are advised to be wary of malicious rumours that may hamper economic development directly and indirectly and to contact officials to enquire about any rumours. Rumour about the liquidation of two private banks in accord with the Central Bank Law is untrue.