Myanmar’s Banking Sector in Chaos as Coup Protest Continues

Yangon, Myanmar

The country’s banking sector is in a state of disarray as mass anti-coup demonstrations continue to rock the streets of Yangon. Since the military takeover at the beginning of February, professionals from various sectors, including bankers, have joined the Civil Disobedience Movement (CDM) in a strike campaign to resist the military government.

Banks Closed and Operations Scaled Back

Many banks across the country remain closed, while others have scaled back their operations. Residents are forced to deal with long lines at ATMs, and cash withdrawal has been either reduced or unavailable, causing businesses to face cash flow difficulties.

• Cash withdrawal limits have been imposed
• Long lines at ATMs have become a common sight
• Businesses are struggling with cash flow issues

Bankers’ Response

Despite the challenges, bankers who have joined the CDM say they are not being pressured to return to work and have not received any personal visits from the military yet. However, they admitted that soldiers in civilian clothes have visited banks asking for contact details of managers.

• Bankers are not being forced back to work
• No personal visits from the military have been reported
• Soldiers in civilian clothes have visited banks

Central Bank’s Response

Myanmar’s Central Bank has slammed the CDM movement, claiming protesters are “destroying their own economy.” Deputy Governor Win Thaw warned that long-term boycotts by employees would have a negative impact on the economy and that the bank has plans to ensure financial stability.

• The Central Bank claims the CDM is harming the economy
• Long-term boycotts will negatively impact the economy
• Plans are in place to ensure financial stability

Experts’ Warning

But experts warn that Myanmar’s political crisis will lead to financial instability, and eventually, banks must resume their services. Aung Wai Yan, treasurer at Shinhan Bank, said the protests have had a prompt impact on the whole country, causing a cash shortage and disrupting international trade payments.

• The political crisis will lead to financial instability
• Banks must eventually resume their services
• Cash shortages and disrupted trade payments are already occurring

Uncertainty for Businesses

U.S. citizen Adam Hunt, director of fintech social enterprise ONOW in Myanmar, said his company is facing an uncertain future under the military government and that the CDM movement has increased uncertainty in all sectors.

• The CDM has increased uncertainty across all sectors
• Companies are making operational plans to support employees’ rights to protest
• Business continuity plans are being developed due to cash reserves

Economic Uncertainty

As the crisis deepens, residents and businesses are left wondering when the banking sector will return to normal. Until then, Myanmar’s economy remains on shaky ground.

• The future of the banking sector is uncertain
• Residents and businesses are facing economic uncertainty
• The economy remains in a precarious state