Citizens Withdraw Cash Crowded, Myanmar Military Bank Threatened Bankruptcy

Myawaddy Bank belongs to the Myanmar military. (Twitter / @ IrrawaddyNews)

JAKARTA - The people of Myanmar again made a massive withdrawal of money at the military-owned Myawaddy Bank, as a form of rejection of the coup and at the same time supporting the national disobedience action on Wednesday local time.

This massive withdrawal of money resulted in long queues in front of Myawaddy Bank's office, even though the bank's opening hours are now limited to a few hours in the morning.

An official from Myawaddy Bank told The Irrawaddy the bank only allows around 200 customers a day to withdraw cash, with withdrawals limited to 5 million kyats or US $ 3,525 (per person. Customers wishing to withdraw cash must start queuing to get tokens at bank at 7:30 am.

"We are worried because it belongs to the Myanmar military. We don't trust them anymore. That's why we decided to take cash immediately, "said Than Than Myint, 56, of Latha Township.

"We hear a lot of rumors that they will run out of money and even have to struggle to pay civil servants' salaries," he added.

Separately, former banker U Phay Win said, military-owned banks are currently experiencing massive withdrawals, making it necessary for them to rapidly increase their cash holdings to meet depositors' demands.

He said a massive uncontrolled withdrawal could result in bankruptcy, especially if all branches had the same problems.

“They have limited the amount of cash a customer can withdraw at one time. But if multiple branches face a large number of withdrawals at the same time, it will be difficult to control. It is possible to face bankruptcy, "said U Phay Win.

To solve the problem, he said the military could temporarily stop withdrawals, or borrow cash from other banks or the central bank.

Most of Myawaddy Bank's branches in major cities remained closed on Wednesday, citing COVID-19 concerns. A Myawaddy Bank customer in Mandalay told The Irrawaddy that many customers are waiting to withdraw money as soon as the bank returns to operation.

Meanwhile, the private banks have not announced when they will resume operations, and there has been no word on this matter from the Bank of Myanmar Association or the Central Bank of Myanmar.