Myanmar Banks Fail to Resume Operations Despite CBM Order

The banking sector is not fully operational due to staff shortages as employees take part in nationwide protests against the military government.

The CBM (Central Bank of Myanmar) asked all banks in Myanmar to resume operations starting from Monday (8 March), however few banks in certain regions have not opened done so, according to local reports.

Private banks in Myanmar’s Yangon Region such Kanbawza Bank, CB Bank and Ayeyarwady Bank, as well as the military-owned Myawady Bank, did not reopen. Privately-owned banks in Mandalay city and Nay Pyi Taw also did not resume operations.

According to reports, the suspension of bank operations since the military coup in early February has brought Myanmar’s domestic and international trade to a standstill.

Most banks in Myanmar were forced to close branches as bank employees have been taking part in the ongoing protests against military government, which unseated the government of elected leader Aung San Suu Kyi.

The banks lack staff for functions ranging from counting money to providing payroll services to companies, the Financial Times reports.

The CBM issued an order on Friday (5 March) asking banks to reopen their branches and resume reporting on daily transactions.

Banks were required to send names of their branches to re-operate in major cities and provide banking services for border trade, as well as submit the personal details of staff in charge to normalise commodity flow and prevent delays in local and foreign trade.

In its instructions, the CBN said the State Administration Council (military regime’s new governing body) issued a resolution to drive the re-operation of banks, provide security for private banks and take action against failures to reopen.

Governments across the world have condemned the military coup in Myanmar and imposed economic punishments in response.

EU is currently preparing to widen its sanctions on Myanmar’s armed forces to target businesses they run, according to Reuters.

The UK and Canada have already imposed sanctions against Myanmar officials including senior military personnel and members of the State Administration Council.

Meanwhile, in the US, the Joe Biden administration announced sanctions against the leaders of the military coup, including to block attempts of the CBN to move about USD 1 billion held at the Federal Reserve Bank of New York days after the military seized power.

The attempts came after the military installed a new governor at the CBM.

According to media reports, CBM deputy governor Bo Bo Nge has been detained and the whereabouts of its former chief Kyaw Kyaw Maung remains unknown.

Several other major economic officials have also been detained and have been missing since the military coup.