Private banks face action for exceeding CBM’s housing loan limits

The government makes concerted efforts to stabilize the local economy and all-round development. The Central Bank of Myanmar allows housing loans for a term of more than three years, depending on the total banking loans, aiming at offering a new loan system for private banks and creating opportunities for property ownership by the people.
However, some private banks grant large sums of housing loans, breaking the directives of the CBM for their own sake, and the CBM investigated the private banks. During the inspection, the following seven private banks are supposed to grant housing loans beyond the stipulations of the CBM.
YOMA Bank grants loans exceeding 11 per cent of the fixed amount of the Central Bank of Myanmar
Myanmar Citizenship Bank grants loans exceeding 8.94 per cent of the fixed amount of the Central Bank of Myanmar
AYA Bank grants loans exceeding 1.96 per cent of the fixed amount of the Central Bank of Myanmar
SME Development Bank grants loans exceeding 1.01 per cent of the fixed amount of Central Bank of Myanmar
UAB Bank grants loans exceeding 3.38 per cent of the fixed amount of Central Bank of Myanmar.
Myanmar Metro Bank grants loans exceeding 0.39 per cent of the fixed amount of the Central Bank of Myanmar
CHID Bank grants loans exceeding 16.34 per cent of the fixed amount of the Central Bank of Myanmar.
The responsible persons will supervise the return of the loans exceeding the fixed amount of CBM from the banks within the specific time, and these seven private banks will face action in accordance with the law.
They will be fined under Section 154 of the Financial Institutions Law, and the relevant officials of CBM will also be taken action for their weakness in the supervision of the private banks. — MNA/KTZH