[Music]
[Applause]
let’s do this
so who here hasn’t yet mark magic hands
up hands up don’t be shy light ends up I
promise I won’t ask you for money now
that’s fantastic thank you so much for
supporting ya Marchbanks now what do you
do with that bank account if you’re like
most PNM are you may get your salary
paid into it you may save a little bit
of money these days you can use an ATM
or even a point-of-sale to make payments
but maybe some of you would like to
borrow to start a small business
maybe finance that new smartphone you’ve
been looking at maybe even buy a new
home but Ken this is what I would like
to talk about today those of you that
put up your hand when I asked you when
you had an EMR bank account
unfortunately you are in the minority
here you only 15% of be on Mars 54
million people have a bank account and
this is often used as the measure of
financial inclusion in this country now
I believe that this statistic is mislead
I believe that the number of people who
can borrow from the Amar’s banks is a
better measure of how well our banks are
serving than the Myanmar community and I
know that if I asked for a show of hands
in this room and across the country of
how many people have bank loans far
fewer hands would go up this is a
if banks are only taking deposits and
not lending they are not doing their
jobs but let’s think here didn’t the
atom are really not by oh yes they do
out there is an informal banking system
with innovative products and services
that suits the needs of the Myanmar
people let me give you a few examples
here we have a market fruit vendor she
borrows on the ten eleven system she may
borrow a hundred thousand chat in the
morning and repay a hundred and ten
thousand chat in the evening ten percent
per day that’s right three thousand six
hundred percent per year this is called
and here we have an SME owner borrowing
from friends and family to finance the
working capital in his business perhaps
at five to six percent per month so he’s
borrowing it between sixty and seventy
five percent per year have you heard of
the Wang Mehta savings and credit union
the Wang Mehta savings and credit union
is a member
operated loans and savings scheme
running catch in Shang Mandalay and BOGO
division run out of monasteries and
nunneries they have a very interesting
collateral the spiritual well-being of
their borrowers in this life and the
next
that’s right if you don’t repay you may
come back in the next life of something
rather uncomfortable their rate started
4% and dropped it to after four years
and then we have this chat come on mom
he’s my favorite I think he’s the
happiest banker in Yama
he runs a light truck from attain to
Yangon and finances the smartphone’s of
his brothers coworkers he keeps a record
on his Samsung like this a little bit of
wishful thinking from Co mama he’s not
financing $100,000 falls he’s our in
Myanmar chat but what’s the read through
here everybody in the mr is landing
accept event
many people in Myanmar are borrowing
just not from the banks so then you may
ask where are all the deposits going in
the formal banking system well I like to
call this the reverse Robin Hood that’s
right
taking from the poor and giving to the
rich let me explain the highest fixed
deposit you can get in this country
today is 10% that doesn’t even keep up
with inflation over the last 90 days
we’ve seen the chat draw between 15 and
20 percent now as we know most things in
this country are imported that means the
purchasing power of your deposits has
gone down by about 15 percent in 90 days
this is a problem and what is worse is
that many banks in this country continue
to lower their deposit rates so where
does the giving to the rich part coming
well as you may know many banks here in
Myanmar must lend against collateral
that’s right they can only lend to
people who already have money in the
formal banking system you must have
money to borrow money potential
borrowers must have collateral that they
post to the bank who then lends against
that collateral something like a
pawnshop what is even more interesting
is that these borrowers can borrow at a
remember our
get through vendor borrowing at three
thousand six hundred percent are SME at
seventy percent
thirteen percent is looking pretty good
right now unfortunately only a small
number of Myanmar can access finance at
this interest rate this is why Myanmar’s
formal banking system operates like a
reverse Robin Hood savers are earning
less and less interest and a small group
of borrowers can access funding at a
very low rate of interest so am I
suggesting that we give up on the Amar’s
formal banking system that we get behind
the financial Anarchy that we’ve talked
about earlier today no I’m not
we must get memoires banks in the game
we must allow them to support Nima’s
development to support small business
homeowners to improve their lives most
importantly we must get lending and
borrowing out of the shadows and into a
regulated banking system that is
inclusive and safe this is not a radical
proposal ladies and gentlemen we have
many examples from around the world of
how free markets drive economic
development EMR is one of the only
countries on the planet that still has
fixed interest rates so let’s talk a
little bit about some of the specific
benefits that might come to this country
if we were to open two free markets SMEs
and consumers today cannot borrow from
yummers banks with the free market they
would be able to access finance at
interest rates far lower than they
currently do in the informal market
savers
would be able to accrue a higher rate of
interest on their deposits as banks
compete for those deposits to lend to
the larger borrowing public so let me
summarize before we wrap things up today
Myanmar has two financial systems the
formal financial system that serves the
needs of a select few the informal
financial system that serves the needs
of well everybody else
neither works we must take bold steps to
make Myanmar’s banks more relevant to
support the economic development of this
country the SMEs the consumers and the
people of this country to make their
lives better one country with one
financial system so let me tell you a
joke I heard the other day Financial
Inclusion in Myanmar is about including
banks in Myanmar’s financial system
let’s do that let’s include Myanmar’s
banks in the Amar’s financial system we
[Applause] [Music]
[Applause]
let’s do this
so who here hasn’t yet mark magic hands
up hands up don’t be shy light ends up I
promise I won’t ask you for money now
that’s fantastic thank you so much for
supporting ya Marchbanks now what do you
do with that bank account if you’re like
most PNM are you may get your salary
paid into it you may save a little bit
of money these days you can use an ATM
or even a point-of-sale to make payments
but maybe some of you would like to
borrow to start a small business
maybe finance that new smartphone you’ve
been looking at maybe even buy a new
home but Ken this is what I would like
to talk about today those of you that
put up your hand when I asked you when
you had an EMR bank account
unfortunately you are in the minority
here you only 15% of be on Mars 54
million people have a bank account and
this is often used as the measure of
financial inclusion in this country now
I believe that this statistic is mislead
I believe that the number of people who
can borrow from the Amar’s banks is a
better measure of how well our banks are
serving than the Myanmar community and I
know that if I asked for a show of hands
in this room and across the country of
how many people have bank loans far
fewer hands would go up this is a
if banks are only taking deposits and
not lending they are not doing their
jobs but let’s think here didn’t the
atom are really not by oh yes they do
out there is an informal banking system
with innovative products and services
that suits the needs of the Myanmar
people let me give you a few examples
here we have a market fruit vendor she
borrows on the ten eleven system she may
borrow a hundred thousand chat in the
morning and repay a hundred and ten
thousand chat in the evening ten percent
per day that’s right three thousand six
hundred percent per year this is called
and here we have an SME owner borrowing
from friends and family to finance the
working capital in his business perhaps
at five to six percent per month so he’s
borrowing it between sixty and seventy
five percent per year have you heard of
the Wang Mehta savings and credit union
the Wang Mehta savings and credit union
is a member
operated loans and savings scheme
running catch in Shang Mandalay and BOGO
division run out of monasteries and
nunneries they have a very interesting
collateral the spiritual well-being of
their borrowers in this life and the
next
that’s right if you don’t repay you may
come back in the next life of something
rather uncomfortable their rate started
4% and dropped it to after four years
and then we have this chat come on mom
he’s my favorite I think he’s the
happiest banker in Yama
he runs a light truck from attain to
Yangon and finances the smartphone’s of
his brothers coworkers he keeps a record
on his Samsung like this a little bit of
wishful thinking from Co mama he’s not
financing $100,000 falls he’s our in
Myanmar chat but what’s the read through
here everybody in the mr is landing
accept event
many people in Myanmar are borrowing
just not from the banks so then you may
ask where are all the deposits going in
the formal banking system well I like to
call this the reverse Robin Hood that’s
right
taking from the poor and giving to the
rich let me explain the highest fixed
deposit you can get in this country
today is 10% that doesn’t even keep up
with inflation over the last 90 days
we’ve seen the chat draw between 15 and
20 percent now as we know most things in
this country are imported that means the
purchasing power of your deposits has
gone down by about 15 percent in 90 days
this is a problem and what is worse is
that many banks in this country continue
to lower their deposit rates so where
does the giving to the rich part coming
well as you may know many banks here in
Myanmar must lend against collateral
that’s right they can only lend to
people who already have money in the
formal banking system you must have
money to borrow money potential
borrowers must have collateral that they
post to the bank who then lends against
that collateral something like a
pawnshop what is even more interesting
is that these borrowers can borrow at a
remember our
get through vendor borrowing at three
thousand six hundred percent are SME at
seventy percent
thirteen percent is looking pretty good
right now unfortunately only a small
number of Myanmar can access finance at
this interest rate this is why Myanmar’s
formal banking system operates like a
reverse Robin Hood savers are earning
less and less interest and a small group
of borrowers can access funding at a
very low rate of interest so am I
suggesting that we give up on the Amar’s
formal banking system that we get behind
the financial Anarchy that we’ve talked
about earlier today no I’m not
we must get memoires banks in the game
we must allow them to support Nima’s
development to support small business
homeowners to improve their lives most
importantly we must get lending and
borrowing out of the shadows and into a
regulated banking system that is
inclusive and safe this is not a radical
proposal ladies and gentlemen we have
many examples from around the world of
how free markets drive economic
development EMR is one of the only
countries on the planet that still has
fixed interest rates so let’s talk a
little bit about some of the specific
benefits that might come to this country
if we were to open two free markets SMEs
and consumers today cannot borrow from
yummers banks with the free market they
would be able to access finance at
interest rates far lower than they
currently do in the informal market
savers
would be able to accrue a higher rate of
interest on their deposits as banks
compete for those deposits to lend to
the larger borrowing public so let me
summarize before we wrap things up today
Myanmar has two financial systems the
formal financial system that serves the
needs of a select few the informal
financial system that serves the needs
of well everybody else
neither works we must take bold steps to
make Myanmar’s banks more relevant to
support the economic development of this
country the SMEs the consumers and the
people of this country to make their
lives better one country with one
financial system so let me tell you a
joke I heard the other day Financial
Inclusion in Myanmar is about including
banks in Myanmar’s financial system
let’s do that let’s include Myanmar’s
banks in the Amar’s financial system we
[Applause] [Music]
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