The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Nationalization looms over Myanmar banks, with key executive out of contact

A pivotal US banker in coup-stricken Myanmar goes offline as his bank is engulfed by crisis.

People line up outside a military-owned bank in Yangon to withdraw money after the military coup. Photo: Reuters

Myanmar’s Financial Institutions Law of 2016 is one of those tracts that bank legal teams are paid to decipher, the detail of its 185 bombastic sections too turgid for hard-charging CEOs to spend much of their time on.

That was before the February 1 military coup that upended the country’s democracy, economy and banking system.

Since then, as soldiers murder with impunity and the spectre of nationalization hangs over a once-dynamic banking scene, the law has become required reading, a portent of what bank executives may have to confront as the system breaks down amid widespread protests.

The key passages are Sections 93-96, the state’s action when banks don’t comply. Section 94a2hh says the state can move to take over a bank “when it has failed to carry out any direction given to it by the central bank”.

Interests are best served if we take the route of opening the bank ourselves, not by an external party
KBZ statement

When the junta seized power, it removed the central bank governor Kyaw Kyaw Maung and his reformist team.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree