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MYTHS AND MATHS: THE IMPACT OF FINANCIAL REGULATIONS ON AGRICULTURE IN MYANMAR | MBI - Mekong Business Initiative

MYTHS AND MATHS:

THE IMPACT OF FINANCIAL REGULATIONS ON

AGRICULTURE IN MYANMAR

Author:

ROGER THOMAS MOYES

KENNETH SHWEDEL

Publication Date: May 1st, 2017

Executive Summary

 

The Government of Myanmar has affirmed its commitment to modernizing banking and finance laws and regulations, and at the same time, to developing the country’s agricultural sector. To realize the latter objective, it will be necessary to encourage commercial banks to increase financing for agricultural enterprises. Although the Myanmar Agricultural Development Bank (MADB), credit cooperatives, and microfinance institutions (MFIs) are actively involved in rural and agricultural finance, commercial banks have been reluctant to directly finance agriculture. Current financial regulations are among the key obstacles to expanded lending to the agricultural sector by Myanmar’s banks.

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