Myanmar: Selected Issues
IMF Staff Country Reports, March 28, 2018
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- Myanmar: Selected Issues
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Bibliographic details
- Published: March 28, 2018
- Series: IMF Staff Country Reports
Overview
- This Selected Issues paper analyzes banking sector developments in Myanmar.
- It highlights that latent banking sector risks are surfacing, following a period of rapid credit growth and as banks adjust to updated financial regulations.
- Over time banks will need to enhance their credit risk management, and reduce the over-reliance on collateral values to safeguard lending.
- A banking system action plan has been developed, to enhance the banking system’s resilience, as well as strengthen the supervisory and resolution framework.
- The ongoing overhaul of the prudential framework and financial sector reforms will strengthen the banking sector and its role in supporting the economy.
Key findings
- Latent banking sector risks are surfacing after a period of rapid credit growth.
- Banks are adjusting to updated financial regulations, which is revealing vulnerabilities.
- There is an over-reliance on collateral values in lending practices.
- The banking system requires strengthened credit risk management capacities.
Policy recommendations and reform actions
- Implement and monitor the banking system action plan to enhance resilience.
- Strengthen the supervisory framework to improve oversight of banks.
- Strengthen the resolution framework to manage failing institutions effectively.
- Overhaul the prudential framework as part of broader financial sector reforms.
- Encourage banks to reduce reliance on collateral values and improve credit risk assessment.
Subject areas and keywords
- Subject: Banking, Commercial banks, Credit, Financial inclusion, Financial institutions, Financial markets, Global value chains, Globalization, Money, Poverty
- Keywords: Asia and Pacific, bank, banking system action plan, Commercial banks, CR, Credit, FDI, FDI inflow, Financial inclusion, Global, Global value chains, growth takeoff, IMF staff calculation, increase bank capital, ISCR, Myanmar, policy bank, private bank, private bank lending, value chain
International Monetary Fund. Asia and Pacific Dept, "Myanmar: Selected Issues", March 28, 2018; Pages: 34; Volume: 2018; Issue: 091; Stock No: 1MMREA2018002; ISBN: 9781484349182; ISSN: 1934-7685.
Content in this bundle
- Country Report