Myanmar denies rumors about instability of private banks

Myanmar denies rumors about instability of private banks

The Central Bank of Myanmar has denied rumors about the instability of private banks in the country which has created some panic among savers, official media reported Saturday.

"They are mere rumors aired by those with ill will to harm the interest of banks which are not true," an announcement of the Central Bank of Myanmar was quoted by the New Light of Myanmar as saying.

"Private banks are operating in line with banking procedures and rules and regulations under the systematic management of the Central Bank of Myanmar and thus, citizens can trust all the private banks," the announcement added.

There is a total of 19 private banks and four state-owned banks in Myanmar.

Meanwhile, Myanmar has allowed the setting up of public companies in a bid to shape the capital market in the development of market economy.

Eleven authorized private banks in Myanmar started from July to admit opening of foreign currency accounts with the public in U.S. dollar, euro and Singapore dollar as well as FEC (foreign exchange certificate).

Previously, the only two state banks were allowed to undertake such foreign currency dealing services.

Aimed at stabilizing the exchange rate of foreign currency and ensure emergence of foreign exchange market in the country, the Central Bank of Myanmar has allowed the 11 Myanmar private banks to trade the three foreign hard currencies.

There are also 20 foreign bank representative offices in Myanmar including those from Singapore, Bangladesh, China, France, Japan, Malaysia, Netherlands, Thailand, Cambodia, Brunei, Vietnam, South Korea, the United States and the United Kingdom.

xinhua