Central Bank of Myanmar issues basic principles for regulation of non-bank financial institutions

28 August 2020

On 9 July 2020, the Central Bank of Myanmar ("CBM") issued Instruction No. 3/2020 ("Instruction") setting out rules on the regulation of non-bank financial institutions ("NBFIs"). The Instruction sets out basic principles, including requirements that loan agreements drawn up by NBFIs must reveal the loan amount, interest rate, repayment period and number of instalments. The Instruction also provides a general principle that NBFI loan agreements and the terms and conditions thereof should be clearly explained to, read and agreed by the borrowers. CBM may take disciplinary action if NBFIs do not comply with the Instruction. The Instruction took effect on 15 July 2020.