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).

Central Bank of Myanmar
မြန်မာနိုင်ငံတော်ဗဟိုဘဏ်

Seal

Headquarters
HeadquartersNaypyidaw
Established3 April 1948 (as Union Bank of Burma)
Ownership100% state ownership[1]
GovernorThan Nyein
Central bank ofMyanmar (Burma)
CurrencyMyanmar kyat
MMK (ISO 4217)
Preceded byUnion Bank of Burma
People’s Bank of Union Bank of Burma
Websitewww.cbm.gov.mm

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, Bobo Aung (Mohammed Aarif) 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[2][3] and took over the functions of the Rangoon branches of the Reserve Bank of India.[4] 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 October 2020, there 27 non-banking finance companies that are currently licensed by the Central Bank.[5] 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[6]
  • Deputy Governors
    • Soe Min[7]
    • Soe Thein
    • Bo Bo Nge
    • Bobo Aung (Mohammed Aarif)
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

#NameTook officeLeft office
1Kyaw Nyein1 July 195425 March 1968
2Kyaw Nyunt18 December 197131 July 1975
3Aye Hlaing8 August 197512 August 1981
4Aung Sint5 September 198122 March 1985
5Kyaw Myint15 July 198511 April 1986
6Maung Maung Hla11 April 198615 October 1987
7Maung Maung Han11 January 198827 December 1992
8Kyi Aye31 December 19922 November 1997
9Kyaw Kyaw Maung20 November 199711 April 2007
10Than Nyein12 April 200731 July 2013
11Kyaw Kyaw Maung1 August 20132 February 2021
12Than Nyein2 February 2021Present

Source:[8]

Appointment of governor

The proposed reappointment of Than Nyein as governor in February 2021.[9]

See also

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

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