Central bank revokes licence of local bank

Central bank revokes licence of local bank

Theint Mon Soe/The Myanmar Times

The Central Bank of Myanmar announced on 16 March 2020 that it is revoking the banking licence of locally incorporated Asia Yangon Bank Ltd (AYB). The central said in its announcement that the revocation is for “breaching the country’s existing laws” but did not provide any further details on the matter.

The central bank has taken over management of AYB and made arrangements to allow customers who wish to do so to withdraw money their money during normal banking hours.

This only the third time the banking licence of a local bank has been revoked. In 2005, CBM revoked the licenses of Asia Wealth Bank, owned by U Aik Htun, and May Flower Bank, owned by U Kyaw Myint, for allegedly being involved in money laundering.

The directors of AYB are Daw Naing Myo Min Nu, U Myint Swe, U Myo Paing aka U Chain Shein, U San Tin, U Tin Pe and U Tun Win, according to company registration data from the Directorate of Investment and Company Administration (DICA).

AYB, which was founded some 20 years ago is headquartered in Botahtaung, Yangon, and has branches in Bayintnaung, Lewe, Mandalay, Taungoo, Monywa, Magwe, Pathein, Pyay and Minbu.

In July, 2017, the CBM introduced rules requiring banks to submit reports on large debts, amended the way bank liquidity ratios are calculated, changed loans offered by banks to fixed-term loans, and tightened regulations on types of assets banks can hold. Specific guidance was also issued for the qualifications of the members of the board of directors of banks, with banks instructed to adhere to the standards when appointing members to their board of directors.

Source: Myanmar Times

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