The Polish solution to Myanmar’s banking sector

The Polish solution to Myanmar’s banking sector

(Visual: Wai Linn Kyaw/MBT)

Most emerging post-socialist economies face the same particular dilemma; How to reform and develop the banking sector.

The centrally-planned, state-command economies were usually characterised by a mono-bank system with a quasi-central bank being also a quasi-commercial entity. Thus, in the process of market institutionalisation one would have to create a commercial banking sector from scratch. The role of the banking sector is beyond that of being a business actor in the capitalist environment. It is an integral part of the financial system, the bloodstream of a market-based regime. It has the power to effectively support the process of growth acceleration, but the insufficiencies in the system can also impede this growth.

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