IMF chief urges caution in reforming Myanmar's banking sector

YANGON , Dec. 7 -- ( Kyodo ) _ International Monitory Fund Managing Director Christine Lagarde praised Myanmar on Saturday for undertaking economic reforms and promoting economic stability while saying the government should not to rush into opening the country's banking sector. Lagarde said at a press conference in Yangon that Myanmar is taking its rightful place in the heart of Southeast Asia with the ongoing economic reforms but said the government needs to take a careful approach in reforming the financial sector.

Letting the gates open to the financial markets "without adequate and solid supervision" can hurt economic stability, she said. During the past two years, Myanmar has introduced financial reforms such as adopting a managed floating exchange rate, removing exchange restrictions and establishing an autonomous central bank system. Lagarde said the central bank must be competent in supervising financial activities, including operations of foreign banks. She suggested that the Myanmar government undertakes tax reform as the next step to strengthen the financial sector. Lagarde arrived in Myanmar on Friday on a two-day visit as part of an Asian trip that also took her to Cambodia and South Korea .

source: HispanicBusiness

http://www.hispanicbusiness.com/2013/12/7/imf_chief_urges_caution_in_reforming.htm