The State Administration Council's news release states that actions will be taken against seven private banks, including Yoma Bank and UAB Bank, for issuing housing loans exceeding the Central Bank's limits, as well as against Central Bank officials who failed to supervise effectively.
The release highlights that the government is working to stabilize and develop the domestic economy. The Central Bank of Myanmar has granted private banks permission to issue new loan products to improve home ownership opportunities, based on the total amount of loans.
However, some private banks, aiming for higher profits, have significantly exceeded the Central Bank's guidelines for housing loans. Necessary inspections were conducted, and it was found that seven private banks had issued loans beyond the stipulated limits.
These banks included Yoma Bank, which exceeded the limit by 11%, Myanmar Citizens Bank by 8.94%, Ayeyarwady Bank by 1.96%, SME Development Bank by 1.01%, UAB Bank by 3.38%, Myanmar Metro Bank by 0.39%, and Construction, Housing, and Infrastructure Development Bank by 16.34%.
The Central Bank will ensure that the excess loans are repaid within the specified timeframe and will take legal action against the officials of the seven private banks who violated the guidelines.
Additionally, the Central Bank will impose effective penalties in accordance with Section 154 of the Financial Institutions Law for the excessive loans and will take actions against the responsible Central Bank officials for their oversight failures.
