Since the 2021 Myanmar coup the banking sector has seen a slowdown, with a number of private bank branches closing.

The banking circle say that the customers have lost their trust in the banking after the Military Council restricted fund transfers and limited cash withdrawals in the country.

Some people from the banking circle also said that the economic slowdown in the country as a consequence of the military coup caused the crisis and then the use of banking facilities drastically fell.

Myanmar Citizens Bank (MCB), which is the listed company on the Yangon Stock Exchange, officially announced on 28 December that it was closing a number of bank branches.

The announcement made by MCB says that it closed five branches including the branches in Sagaing Region where armed resistance caused instability.

The branches which were closed in Sagaing Region are Monywa branch of Chindwin Yadana, Taze and Kantbalu branches.

A businessman said that one third of all domestic bank branches had to be closed on security grounds and political instability.

Similarly Australian ANZ Bank announced that they would withdraw from Myanmar as the military coup made the running of the business and transactions complex and complicated.

The International Finance Corporation (IFC) under the World Bank resold its shares invested in Yoma Bank for its collaboration with military banks which are under the economic sanctions imposed by US. IFC owned 4.5% of Yoma Bank shares.

Some staff from domestic banks joined the Civil Disobedience Movement (CDM) after the military coup and then the Military Council dismissed them from their jobs and some of them were violently arrested.

Moreover, the Military Council made restrictions on cash withdrawals from the banks, monitoring cash withdrawals in large quantities, and arresting those who made such withdrawals and transferred cash in large quantities.