The Central Bank of Myanmar (“CBM”) published Directive No. 8/2023 on 24 March 2023 regarding further extension of the amended formula for calculating the liquidity ratio of banks in Myanmar (“Directive”).
To look at this historically, the CBM had published several directives between 2020 and 2021 regarding calculation of liquidity ratio and aspects related thereto. We have briefly summarized them as under:
In this Directive, CBM notes that pursuant to Directive No. 2/2022 dated 21 March 2022, it had temporarily extended the revised calculation of liquidity ratio from 1 April 2022 to 31 March 2023. It further notes that considering the liquidity issues faced by the banks due to the pandemic, CBM decided to further extend the revised calculation for a period of six (6) months starting from 1 April 2023 and ending on 30 September 2023.
The Directive concludes by noting that other than the extension described above, the content of the Notification 19/2017 remains unchanged.
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