Central Bank of Myanmar

Central Bank of Myanmar
မြန်မာနိုင်ငံတော်ဗဟိုဘဏ်
Seal
Seal
Headquarters
Headquarters
Headquarters Naypyidaw
Established 3 April 1948 (as Union Bank of Burma)
Governor Kyaw Kyaw Maung[1]
Central bank of Myanmar (Burma)
Currency Myanmar kyat
MMK (ISO 4217)
Preceded by Union Bank of Burma
People’s Bank of Union Bank of Burma
Website www.cbm.gov.mm

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).

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 Set Aung, Khin Saw Oo and Soe Min. 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 Act of Union Bank of Burma 1947 and took over the functions of the Rangoon branches of the Reserve Bank of India.[2] 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 (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.

Members

As of end of May 2018, its current members are as follows:

  • Governor
    • Kyaw Kyaw Maung[3]
  • Deputy Governors
    • Soe Min[4]
    • Soe Thein
    • Bo Bo Nge
#DepartmentDirector GeneralsDeputy Director GeneralsDirectors
(1)Administration & Human Resource Development DepartmentAung AungMyo Min
(2)Financial Institutions Supervision DepartmentThan Than SweWin Myint
  • Win Htein Min
  • Khin Swe Win
(3)Accounts DepartmentMyint Myint KyiKhaing Shwe WarKhin Sandar
(4)Governor's OfficeWin Thaw
(5)Currency Management DepartmentAung Kyaw Than
  • Ye Aung
  • Nyan Tin
  • Tun Lin Aung
  • Kyaw Ye Naing
  • Kyaw Min Oo
(6)Foreign Exchange Management DepartmentMay Toe WinMin Han SoeWin Htike
(7)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
(8)Internal Audit DepartmentMay Khaing WinAye Aye Than
(9)Board Secretary's OfficeNwe Ni Tun
(8)Yangon Branch
(9)Mandalay BranchAung Kyaw Htoo

List of governors

#NameTook OfficeLeft Office
(1)Kyaw Nyein1 July 195425 March 1968
(2)Kyaw Nyunt18 December 197131 July 1975
(3)Aye Hlaing, Dr8 August 197512 August 1981
(4)Aung Sint5 September 198122 March 1985
(5)Kyaw Myint15 July 198511 April 1986
(6)Maung Maung Hla11 April 198615 October 1987
(7)Maung Maung Han11 January 198827 December 1992
(8)Kyi Aye31 December 19922 November 1997
(9)Kyaw Kyaw Maung20 November 199711 April 2007
(10)Than Nyein12 April 200731 July 2013
(11)Kyaw Kyaw Maung1 August 2013Present

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 (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.[5]

See also

General:

Further reading

  • "The Union of Myanmar" (PDF). South East Asian Central Banks Research and Training Centre. 2005. pp. 45–49. Archived from the original (PDF) on 29 September 2007. Retrieved 2 July 2006.

References

  1. Aye Thidar Kyaw (29 July 2013). "Old hand on new board". The Myanmar Times. Retrieved 31 July 2013.
  2. "Central Bank of Myanmar". www.cbm.gov.mm. Retrieved 2017-07-16.
  3. "List of Governors of the Central Bank of Myanmar | Central Bank of Myanmar". www.cbm.gov.mm. Retrieved 2016-09-20.
  4. "Contact List". www.cbm.gov.mm. Retrieved 2018-05-26.
  5. '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.

Coordinates: 19°47′29″N 96°08′39″E / 19.7915°N 96.1441°E / 19.7915; 96.1441

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