IMF chief advises Myanmar to go slow in opening banking sector

IMF chief advises Myanmar to go slow in opening banking sector

Myanmar should not rush into opening up its banking sector to international competition, the International Monetary Fund advised Saturday.

"It's most suitable for Myanmar to use the 'no haste, no waste' way for opening up its banking sector," IMF chief Christine Lagarde on the conclusion of her first two-day visit to the once pariah state.

Lagarde pledged that the IMF will provide technical assistance to the Myanmar Central Bank in monitoring Myanmar's fledgling banking system.

"Myanmar must stabilize its banking system with strong monetary policy, directed by an independent central bank and a bank monitoring system with the help of IMF," Lagarde said.

The IMF has forecast that Myanmar's economy will grow 6.75 per cent in the fiscal year 2013-14, ending in March.

The IMF and other international lenders such as the World Bank and Asian Development Bank only returned to Myanmar last year, after ending their activities in the formerly junta-run state in the wake of an army crackdown on pro-democracy protests in 1988.

Myanmar has one of the least developed banking systems in Asia, according to the ADB.

The Central Bank of Myanmar has allowed international banks to open in the country representative offices, which cannot extend loans or accept deposits, and some foreign banks to open joint ventures with local banks.

The central bank has not yet allowed foreign banks to open full branches in Myanmar, but it recently revealed plans to allow foreign banks to start limited activities in early 2014.

Central Bank officials will meet soon with the heads of all local private banks to prepare them for the development, an official said.

Businessghana