Central Bank of Myanmar
|Established||2 July 1990|
|Governor||Kyaw Kyaw Maung|
|Central bank of||Myanmar (Burma)|
MMK (ISO 4217)
|Preceded by||Union Bank of Burma
People’s Bank of Union Bank of Burma
The Central Bank of Myanmar (Burmese: မြန်မာနိုင်ငံတော်ဗဟိုဘဏ်; MLCTS: mran ma nuing ngam taw ba hui bhan IPA: [mjəmà nàinŋàndɔ̀ bəhòʊbàn]; abbreviated CBM) is the central bank of Myanmar (formerly Burma). It was established under the Central Bank of Myanmar Law in 1990.
Its headquarters are in Yankin Township, Yangon, Yangon Division, and it is headed by a 17-member board of directors, headed by Than Nyein. The Central Bank of Myanmar is operated by the Ministry of Finance and Revenue, which is a government ministry headed by Major-General Hla Tun. The Deputy Minister of Revenue and Finance is Colonel Hla Thein Swe.
CBM has liberalised the financial organisations for competition, efficiency and integration into the regional financial system. As of the end of December 2007, there are 15 domestic private banks and 13 representative offices of foreign banks and three representative offices of foreign insurance companies in Myanmar. According to the changes in the economic requirements of the country, the Central Bank rate has been increased from 10 percent to 12 percent since April 1, 2006.
Agricultural liberalisation speeded up after the elimination of the government procurement system of the main agricultural crops such as rice, pulses, sugarcane, cotton, etc., in 2003–04. The state also reduced the subsidised agricultural inputs, especially fertiliser. With an intention to enhance private participation in trade of agricultural products and inputs, the government is now encouraging export of crops which are in surplus in domestic markets or grown on fallow or waste land, giving opportunities to farmer and private producers.
Upon the guidance of the Ministry of Finance & Revenue, the CBM is responsible for financial stability and supervision of the financial sector in Myanmar. The institutional coverage of the financial supervisory authority includes state-owned banks and private banks in Myanmar. Two main approaches (on-site examination and off-site monitoring) are currently used for supervision, regulation and monitoring of financial stability.
On-site examination involves assessing banks’ financial activities and internal management, to identify areas where corrective action is required and to analyse their banking transactions and financial conditions, ensuring that they are in accordance with existing laws, rules and regulations and the instructions of the CBM by using CAMEL. Off-site monitoring operations are normally based on the weekly, monthly, quarterly and annual reports which are submitted by the banks to the CBM.
The Central Bank has also issued guidelines on the statutory reserve requirement, capital adequacy, liquidity, classification of N.P.L. and provision for bad and doubtful debts, single lending limit, etc. The reserve requirement, liquidity and capital adequacy required to be maintained by financial institutions have been prescribed according to the standards of the Bank for International Settlements (BIS). However, the implementation of Basel II will still take a few more years.
As of end of April 2007,[needs update] its current members are as follows:
- Than Nyein
- Deputy Governor
- Maung Maung Win
- Ohmar Sein (Research and Training Department)
- Maung Maung (Internal Audit and Bank Supervision Department)
- Nay Aye ( Security Department)
- Hla Myint (Currency Department)
- Tin Htoo (Administration Department)
- Deputy Directors
- Myint Myint Tin (Foreign Exchange Management Department)
- Khin Saw Oo (Research and Training Department/Bank Regulation Department)
- Naw Eh Hpaw (Accounts Department)
- Kyaw Win Tin (Currency Department)
- Thein Zaw (Administration Department)
- Aung Kyaw Than (Security Department)
- Assistant Directors
- Hla Nyunt (Administration Department)
- Maung Maung Than (Currency Department)
- Aung Kyaw Htoo (Currency Department, Upper Myanmar)
- Myint Myint Than (Currency Department)
- Kyu Kyu Thein (Internal Audit and Bank Supervision Department)
- Than Than Swe (Accounts Department)
- Khin Cho Cho (Research and Training Department)
- Thida Myo Aung (Foreign Exchnage Management Department)
- May Malar Maung Gyi (Research and Training Department)
- Myo Min (Security Department)
- "The Union of Myanmar" (PDF). South East Asian Central Banks Research and Training Centre. 2005. pp. 45–49. Retrieved 2006-07-02.[dead link]