July 1, 2024

The junta announced on the evening of July 1 that it will take action against seven private banks, including Yoma Bank, Ayeyarwady Bank (AYA Bank), United Amara Bank (UAB), Myanmar Citizens Bank (MCB), Myanma Microfinance Bank, Myanmar Metro Bank, and the Construction and Housing Development Bank. The junta claims that these banks have issued numerous home loans with interest rates exceeding those set by the Central Bank.

According to the junta’s statement, Yoma Bank issued home loans with interest rates 11% higher than the Central Bank’s rates, Myanmar Citizens Bank by 8.94%, AYA Bank by 1.96%, the Myanma Microfinance Bank by 1.01%, UAB by 3.38%, Myanmar Metro Bank by 0.39%, and the Construction and Housing Development Bank by 16.34%.

On June 4, Yoma Group Chairman U Thein Wai, who leads Yoma Bank, was reportedly arrested by the junta over financial transactions related to condo sales in Thailand. However, neither Yoma Bank nor Yoma Group has confirmed or denied this.

Regarding AYA Bank, its Chairman U Zaw Zaw was previously detained for a significant period following the military coup in 2021. Although he has resurfaced publicly, AYA Bank is now being targeted over home loan interest rates.

U Zaw Zaw was known to support the junta. Similarly, U Thein Wai’s Yoma Bank and U Ne Aung’s UAB, which is run by the brother of the late junta minister U Aung Thaung’s son, Navy Chief of Staff Moe Aung, are also being targeted.

The junta’s statement indicated that officials from the seven banks would face legal action for violating financial regulations and could be fined under Section 54 of the Financial Institutions Law. It also mentioned that officials from the Central Bank involved with these banks would be investigated and held accountable.

This move is part of the junta’s broader crackdown on financial institutions and prominent business figures as it seeks to exert greater control over the economy and stifle potential sources of opposition.