Myanmar: Central Bank extends regulation compliance deadline to 2023

In view of COVID-19, the Central Bank of Myanmar (CBM) has granted a three-year extension for banks to comply with four directives to better align the sector with international standards released in 2017.

Banks now have until August 31, 2023 to comply with:Notification No. (16/2017) Capital Adequacy Regulation, Notification No. (17/2017) Asset Classification and Provisioning Regulations, Notification No. (18/2017) Large Exposures Regulation, and Notification No. (19/2017) Liquidity Ration Requirement Regulation.

The original deadline for compliance was August 31, 2020. 

The CBM said the deadline has been extended to support the banks as the industry takes steps to respond to an economic slowdown wrought by COVID-19.

U Than Lwin, senior consultant from KBZ Bank, said the banks had requested for an extension to comply with the regulations, which include converting long term overdraft loans into three-year term loans. 

“The extended timeline is good for banks. It is the right thing to do during COVID-19,” he said.

The banks are obliged to set a timeline for complying with the regulations by 2023 and should submit regular reports on developments to the CBM every month. 

The CBM urged the local banking industry to continue taking steps to comply with the regulations, which were issued to strengthen each bank and the industry as a whole. 

Source: https://www.mmtimes.com/news/central-bank-extends-regulation-compliance-deadline-2023.html