Central Bank of Myanmar
The Central Bank of Myanmar (Burmese: မြန်မာနိုင်ငံတော်ဗဟိုဘဏ်; MLCTS: myan ma naing ngam taw ba ho bhan IPA: [mjəmà nàinŋàndɔ̀ bəhòʊbàn]; abbreviated CBM) is the central bank of Myanmar (formerly Burma).
|Established||3 April 1948 (as Union Bank of Burma)|
|Ownership||100% state ownership|
|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
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.
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.
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 (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.
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As of end of May 2018, its current members are as follows:
|Department||Director generals||Deputy director generals||Directors|
|Administration & Human Resource Development Department||Aung Aung||Myo Min|
|Financial Institutions Supervision Department||Than Than Swe||Win Myint||
|Accounts Department||Myint Myint Kyi||Khaing Shwe War||Khin Sandar|
|Governor's Office||Win Thaw|
|Currency Management Department||Aung Kyaw Than||
|Foreign Exchange Management Department||May Toe Win||Min Han Soe||Win Htike|
|Monetary Policy Affairs and Financial Institutions Regulation Department||Tin Moe Moe||
||Win Win Than|
|Internal Audit Department||May Khaing Win||Hla Htay|
|Board Secretary's Office||Nwe Ni Tun|
|Mandalay Branch||Aung Kyaw Htoo|
List of governorsEdit
|#||Name||Took office||Left office|
|1||Kyaw Nyein||1 July 1954||25 March 1968|
|2||Kyaw Nyunt||18 December 1971||31 July 1975|
|3||Aye Hlaing||8 August 1975||12 August 1981|
|4||Aung Sint||5 September 1981||22 March 1985|
|5||Kyaw Myint||15 July 1985||11 April 1986|
|6||Maung Maung Hla||11 April 1986||15 October 1987|
|7||Maung Maung Han||11 January 1988||27 December 1992|
|8||Kyi Aye||31 December 1992||2 November 1997|
|9||Kyaw Kyaw Maung||20 November 1997||11 April 2007|
|10||Than Nyein||12 April 2007||31 July 2013|
|11||Kyaw Kyaw Maung||1 August 2013||Present|
Appointment of governorEdit
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 (in two separate two terms) for a long time. Some argued that it was time for a change if reforms were to be expected in economic policy in Myanmar.
- Aye Thidar Kyaw (29 July 2013). "Old hand on new board". The Myanmar Times. Retrieved 31 July 2013.
- "The Union Bank of Myanmar Act, 1947 [No. LX of 1947]" (PDF). 13 September 1947.
- "Central Bank of Myanmar". www.cbm.gov.mm. Retrieved 16 July 2017.
- "List of Governors of the Central Bank of Myanmar | Central Bank of Myanmar". www.cbm.gov.mm. Retrieved 20 September 2016.
- "Contact List". www.cbm.gov.mm. Retrieved 26 May 2018.
- "List of Governors of the Central Bank of Myanmar | Central Bank of Myanmar". www.cbm.gov.mm.
- 'President nominates Central Bank governor for another term', Frontier Myanmar, 26 July 2018, and "'I want someone else': Dismay as veteran Central Bank chief nominated for second term', Frontier Myanmar, 30 July 2018.