Bank Policy in Burma
Bank Policy in Burma
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Introduction Commercial banking in Burma started in Burma before it gained its independence in the early nineteenth century. The banks supported chettiar lending. There were more foreign banks than indigenous banks from the Burma citizens. An example of the Burma commercial bank was the Dawson’s bank which began in the early nineteenth century. Most of the banks primary goal was to focus on the trade industry or business in Burma. Merchant and traders who were British bankers evolved in to institution that took part in international banking. The institutions were referred to as exchange bank that majorly financed trade in Burma. They were confined majorly in Rangoon and took deposits from professional from Burma, Europeans managers, growing number of wealthy Burmese and Indian business owners. Exchange bank was also involved in bill of exchange which is a device that allows an exporter to sale their exports in their own currency. Later the banks started giving out credits due to the bill of exchange and were short term, mostly for 60 days but never more than 90 days. The trade finance in Burma brought about the provision of overdraft to qualified firms. The banks also financed the government with funds for development of the country.
Exchange Banks The exchange bank was involved mostly in trade finance and bill of exchange. Bill exchange was 60 percent of the business conducted by the exchange banks. The banks gave out long term loans and mostly short term loans. This lending were usually given to the agricultural sector and trade in Burma. The short term lending was mostly given in terms of overdraft which the banks profited from the interest rates on them. Long term lending was very hard to acquire unless one has collateral for the bank. Most of the collateral included gold bullion , primary commodity, share equity in local company, immovable
By Name
Course
Professor
University
City/State
Date
Introduction Commercial banking in Burma started in Burma before it gained its independence in the early nineteenth century. The banks supported chettiar lending. There were more foreign banks than indigenous banks from the Burma citizens. An example of the Burma commercial bank was the Dawson’s bank which began in the early nineteenth century. Most of the banks primary goal was to focus on the trade industry or business in Burma. Merchant and traders who were British bankers evolved in to institution that took part in international banking. The institutions were referred to as exchange bank that majorly financed trade in Burma. They were confined majorly in Rangoon and took deposits from professional from Burma, Europeans managers, growing number of wealthy Burmese and Indian business owners. Exchange bank was also involved in bill of exchange which is a device that allows an exporter to sale their exports in their own currency. Later the banks started giving out credits due to the bill of exchange and were short term, mostly for 60 days but never more than 90 days. The trade finance in Burma brought about the provision of overdraft to qualified firms. The banks also financed the government with funds for development of the country.
Exchange Banks The exchange bank was involved mostly in trade finance and bill of exchange. Bill exchange was 60 percent of the business conducted by the exchange banks. The banks gave out long term loans and mostly short term loans. This lending were usually given to the agricultural sector and trade in Burma. The short term lending was mostly given in terms of overdraft which the banks profited from the interest rates on them. Long term lending was very hard to acquire unless one has collateral for the bank. Most of the collateral included gold bullion , primary commodity, share equity in local company, immovable
Bibliography: KYI, K. M. (2000). Economic development of Burma: a vision and a strategy; [a study by Burmese economists]. Stockholm, Sweden, Olof Palme Internat. Center. SINGH, U. S. (1979). Burma and India: 1948-1962; (a study in the foreign policies of Burma and India and Burma 's policy towards India). New Delhi [u.a.], Oxford & IBH Publ. Co. TURNELL, S. (2008). Fiery dragons: banks, moneylenders and microfinance in Burma. Copenhagen, NIAS Press.