Myanmar s banking system has not always lagged this far behind its peers. The giz financial sector development project in myanmar started in autumn 2012. Myanmar at the time and had issued over 15,000 credit cards. Pdf mobile banking adoption among customers within. Current situation and challenges for the banking sector 1.
Besides, banks in myanmar function vastly below international standards. Myanmar s banking assetstogdp ratio of 49% is the lowest among asean peers. Myanmars banking sector the financial system plays a significant role in the development of a countrys economy. Banking sector reforms in myanmar asean business news.
Asia wealth bank awb began offering credit cards in 1996 and online banking services in 2001. The financial system in myanmar is dominated by the banking sector and is the least. Over the last four years, the myanmar banking sector has seen assets grow by about. The financial system in myanmar is dominated by the banking sector and is the least developed in south east asia. A system that supplies needed funds in a timely manner as growth proceeds generates a virtuous circle for. Citizens continue to be wary of the banking system, following a history of poor management under military rule till 2011. Central bank of myanmar in yankin township, yangon. Myanmar wants to modernize its banking system bloomberg.
Ensure that foreign investment in the banking system occurs slowly and in stages. Since the political reforms of 2011, the banks and financial institutions law of. The financial sector mobilizes savings and allocates credits to other sectors to promote economic growth. The future direction of myanmar s banking sector summary myanmar 1. Myanmar is embarking on the first comprehensive audit of stateowned banks in decades, part of a push to modernize the financial system and tackle risks to the nations rapid economic growth. Once the envy of asia, myanmars financial sector is now a. Modern banking and financial services in myanmar are in their infancy.
In any country, financial services sector occupies a unique place. A few foreign banks could be allowed to enter myanmar s banking system, but only under restrictive conditions, until the regulatory framework is stronger and domestic banks are more efficient and financially stable. The banking sector comprises the central bank of myanmar cbm which was established pursuant to the central bank of myanmar law in 1990, 4 other stateowned banks, and 19 domestic private banks. Potential for the growth of financial intermediation economies grow when transactions in goods and services flourish. Myanmars banking sector in transition current status and. Due to the liberalization of the telecommunication market in myanmar, the private banking sector is trying to introduce mobile banking system.
The financial system plays a significant role in the development of a countrys economy. Myanmars financial sector, a challenging environment for banks. It also contributes towards a large number of employment, and provides necessary funds to various economic agents to enjoy sustainable economic growth. Pdf on oct 12, 2016, om ki and others published myanmars financial sector. Bank adb, its board of governors, or the governments they represent. Foreign banks in myanmar are only permitted to open representative offices. The financial sector in myanmar is the least developed of all in southeast asia and cannot adequately fulfil its role as a financial.
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