Can someone explain to me why Myanmar needs almost 50 banks, yet Singapore, an economy 20 times larger than Myanmar’s, can get by with just three large local banks?
Additionally, I’d like to know why we have to accept nearly 100 political parties when the neighboring countries—Thailand, Malaysia, etc.—can get by with just a few major ones.
The more the merrier mentality is not benefiting the nation politically or economically. Allow me to explain why.
First
of all, it suggests a lack of national cohesion and demonstrates our own incapacity to cooperate in order to develop larger and better.
Why can’t we put our faith in a select group of large banks and CBM’s ability to competently oversee four or five of them?
We may be moving in the wrong direction when the entire global banking system strives to promote the idea that the bigger, the better.
Find out from every wealthy individual in Myanmar what their plans are for the time when they have some extra cash.
Among the best would be to open a bank. While this may seem like a basic viewpoint, the desire to raise money from the public as deposits for his other endeavors is understandable when one realizes that every group representing the majority of trades aspires to establish a bank.
A bank was established for livestock and fisheries, another for minerals, another for tourism, another for farmers, another for housing and construction, and still another for microfinance.
Then, which banks—Education, CMP, Transport, Edible Oil, Rice, and Corn—come next? Where does it finish?
The owners’ coffers are the only reason smaller banks in Myanmar exist; depositors’ interests are not served by them.
Try to withdraw more than K5 million from your personal account at smaller banks like GTB or SMEDB, even if CBM might say that everything is back to normal at these banks. You’d receive a great surprise!
Second,
in order to guarantee that the mini-mouses in the game remain relevant, the regulator must reduce the requirements for registration or licensing in order for them to continue existing.
According to the banking regulations, banks must provide the public with annual reports, or financial statements.
How many of these yearlies are being produced for the general public, prospective depositors, and investors, one wonders.
Apart from blaming them for complete non-compliance, what additional action has CBM taken? Smaller banks either don’t have the resources or think the government will be kind to them because of their size.
If financial restrictions are voluntary, how can we ever establish a nation of law and order? The registration of political parties is the same.
In order to keep village idiots from wasting everyone’s time, candidates for MP (Member of Parliament) must deposit a sum of S$15,000 with the government before they may run in any elections.
Moreover, he would forfeit all of the deposits if he is unable to secure at least 10% of the vote in the constituency he is running for.
The requirements to register as a political party and become a Member of Parliament in Myanmar are so minimal that anyone can run for office.
Additionally, voters may be misled into choosing candidates based more on their popularity and BS skills than on their qualifications and merits.
He may criticize and spew nonsense with the authority of someone running a government ministry or department, as demonstrated by the numerous anecdotes from the elections of 2020 and 2015, when the general public mistakenly associated poverty with honesty.
Third,
the more the merrier idea raises the rate of non-compliance and places additional administrative obligations on the government. The smaller banks and political parties lack the financial resources to establish compliance managers or departments, even though the larger institutions and parties do.
As a result, it became commonplace to anticipate additional instances of their noncompliance, thus entangling the government in unimportant issues that do not advance economic growth.
Fourth,
why do we not make the comparisons with the nations whose success stories we need to follow in order to catch up? Long ago, Singapore rose to the top of the world rankings. Bangkok is emerging as a global metropolis.
If nothing else, we should hold ourselves to a high standard by taking a close look at how the Thai people have managed to expand significantly with fewer banks and political parties while avoiding economic disruption from several coups and successive changes of government.
Finally,
the larger the better—that is, the inverse of the more the merrier—applies to specific associations and sectors.
Larger companies with larger reserves are more beneficial to the nation and economy than small and medium-sized enterprises (SMEs), according to utilities, banks, real estate developers, and political parties.
Particular industries that support SMEs’ expansion—such as construction, services, health and wellness, etc.—are more suited for their development.
Similar to having kids, having fewer of them is preferable in this situation rather than more. Instead of trying to appease every politician and businessperson who begs for favors, let’s try to help the nation by giving it a level playing field and the much-needed boost to economic growth.
