Central Bank of Myanmar


The Central Bank of Myanmar is the central bank of Myanmar.

Organisation

Its headquarter located in Naypyidaw, and it has branches in Yangon and Mandalay. The Governor is Kyaw Kyaw Maung and three Vice Governors are Soe Min, Soe Thein and Bo Bo Nge. The Central Bank of Myanmar became an autonomous and independent regulatory body by the Central Bank of Myanmar Law which was enacted by the Myanmar Parliament in 2013.

History

The Central Bank of Myanmar was founded as the Union Bank of Burma on 3 April 1948 by the Union Bank of Burma Act, 1947 and took over the functions of the Rangoon branches of the Reserve Bank of India. The Union Bank of Burma was opened at the corner of Merchant Road and Sule Pagoda Road and had a sole right of currency issue.

Role

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 1 April 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 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. However, the implementation of Basel II will still take a few more years.

Members

As of end of May 2018, its current members are as follows:
DepartmentDirector generalsDeputy director generalsDirectors
Administration & Human Resource Development DepartmentAung AungMyo Min
Financial Institutions Supervision DepartmentThan Than SweWin Myint
  • Win Htein Min
  • Khin Swe Win
Accounts DepartmentMyint Myint KyiKhaing Shwe WarKhin Sandar
Governor's OfficeWin Thaw
Currency Management DepartmentAung Kyaw Than
  • Ye Aung
  • Nyan Tin
  • Tun Lin Aung
  • Kyaw Ye Naing
  • Kyaw Min Oo
  • Foreign Exchange Management DepartmentMay Toe WinMin Han SoeWin Htike
    Monetary Policy Affairs and Financial Institutions Regulation DepartmentTin Moe Moe
  • Thet Thet Hla
  • Moe Moe Kyi
  • Tin Nyo Tun
  • Htwe Htwe Aye
  • Win Win Than
    Internal Audit DepartmentMay Khaing WinHla Htay
    Board Secretary's OfficeNwe Ni Tun
    Yangon Branch
    Mandalay BranchAung Kyaw Htoo

    List of governors

    Source:

    Appointment of governor

    The proposed reappointment of Kyaw Kyaw Maung as governor in August 2018 caused controversy. Numerous commentators, including parliamentarians, noted that he had held the position for a long time. Some argued that it was time for a change if reforms were to be expected in economic policy in Myanmar.