Central bank turns the spotlight on loan favouritism
The Central Bank of Myanmar has accused private banks of granting loans to individuals connected with bank directors. But some businessmen disagree with CB that the banks are self-serving. The Central Bank is investigating the activities of private banks, Director General U Win Thaw told The Myanmar Times on January 31. “During last week’s meeting, held by the Private Sector Development Committee, the businessmen raised the issue of private banks being reluctant to extend adequate amount of loans to small and medium enterprises [SMEs]. The businessmen heard that private banks were granting loans to their own people, such as their family members and relatives, and to their companies.
