The government prefers to help than protect local bank services, Union Minister of Finance and Planning U Kyaw Win said.
He said this was to encourage finance services in Myanmar to develop and compete with those offered by foreign finance institutions.
“Protecting local banks can limit development. The local bank services have been protected for many years.
“We will only provide assistance and give full support. With competition, the quality of these services will improve,” he said on March 18 at the Myanmar Investment Commission Meeting at the Novotel Hotel inYangon.
U Kyaw Win also said there were discussions with banks on easing loan requirements as many local businesses face problems securing loans.
He said they were trying to find alternative ways to allow businesses to get loans without collaterals.
“We will keep negotiating until we find a way to help the local businesses get loans,” he said.
Local entrepreneurs can apply for loans from private banks but due to collateral issues, the service is not widespread.
Local bank services in Myanmar started in 2010. In 2013, local banks were also given permits to exchange and transfer foreign currencies.
In 2015, the government allowed 19 foreign banks to provide services and cooperate with local banks in card system-related businesses.
– Translation by Kyaw Soe Htet