Myanmar banking officials on Saturday sought to reassure nervous savers after rumours over the fate of the boss of the country's biggest private bank saw account holders dash to withdraw their cash. Customers of Kanbawza Bank in Yangon pulled out around nine billion kyat ($10.5 million) net on Friday - more than four times the maximum amount that would normally be expected - according to the bank's vice chairman Than Lwin.
Rumours had spread across Myanmar's main commercial city that the apparent disappearance of Kanbawza boss Aung Ko Win - who is believed to have connections to the country's former junta - was because he had been arrested. "I don't want people to believe such rumours because we have full backing from the central bank," Than Lwin told a specially-convened press conference aimed at dampening the impact of the speculation.
He said Aung Ko Win himself intended to attend the meeting but had been called away to the capital Naypyidaw by the country's reformist president, former general Thein Sein. Kanbawza has total capital of nearly 100 billion kyat ($117.6 million), according to Than Lwin. Win Thaw, deputy director general of the Central Bank of Myanmar, said his organisation conducted daily checks to ensure the stability of the country's banks. "There is no reason to worry at all," he said, adding that the rumour was likely aimed at damaging Kanbawza, which with 79 branches holds a third of the market share. Trust in Myanmar's banking system has never really recovered from a major crisis in 2003 that saw three banks completely collapse, exacerbated by the policies of the Central Bank such as recalling loans from borrowers.
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