Myanmar banking system pdf

Myanmar wants to modernize its banking system bloomberg. 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. Since the political reforms of 2011, the banks and financial institutions law of. 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. Besides, banks in myanmar function vastly below international standards. The giz financial sector development project in myanmar started in autumn 2012. Pdf mobile banking adoption among customers within. The financial system in myanmar is dominated by the banking sector and is the least developed in south east asia. Banking sector reforms in myanmar asean business news.

The financial system plays a significant role in the development of a countrys economy. Exchange management law in 2012, the central bank of myanmar law in 20, and the financial institutions law in 2016. 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. Asia wealth bank awb began offering credit cards in 1996 and online banking services in 2001. Bank adb, its board of governors, or the governments they represent. Potential for the growth of financial intermediation economies grow when transactions in goods and services flourish. Myanmar s banking system has not always lagged this far behind its peers. The future direction of myanmar s banking sector summary myanmar 1. Myanmars banking sector the financial system plays a significant role in the development of a countrys economy.

Myanmars existing financial sector legal framework was designed for a closed economy, not for a marketbased economy. Foreign banks in myanmar are only permitted to open representative offices. Current situation and challenges for the banking sector 1. 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. Myanmar s banking assetstogdp ratio of 49% is the lowest among asean peers. Central bank of myanmar in yankin township, yangon. Modern banking and financial services in myanmar are in their infancy. Ensure that foreign investment in the banking system occurs slowly and in stages.

In july 2017 the central bank of myanmar cbm introduced a fresh set of four regulations. Citizens continue to be wary of the banking system, following a history of poor management under military rule till 2011. Myanmars banking sector in transition current status and. Myanmar at the time and had issued over 15,000 credit cards. The financial sector in myanmar is the least developed of all in southeast asia and cannot adequately fulfil its role as a financial. A system that supplies needed funds in a timely manner as growth proceeds generates a virtuous circle for. These laws ended myanmar s system of dual exchange rates, established central bank independence, and set strong prudential standards for the banking sector. In any country, financial services sector occupies a unique place. A sound financial system is an essential pillar of every economy. The financial sector mobilizes savings and allocates credits to other sectors to promote economic growth. Myanmars financial sector, a challenging environment for banks. Collection of papers on myanmars financial sector giz. Due to the liberalization of the telecommunication market in myanmar, the private banking sector is trying to introduce mobile banking system.