Central Bank of Myanmar

Central Bank of Myanmar
မြန်မာနိုင်ငံတော်ဗဟိုဘဏ်

Seal Headquarters
Headquarters	Naypyidaw
Established	3 April 1948 (as Union Bank of Burma)
Ownership	100% state ownership[1]
Governor	Than Nyein
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 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[]

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

• Governor
  • Than Nyein^[6]
• Deputy Governors
  • Win Thaw^[7]
  • Than Than Swe

! 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||

• Win Htein Min
• Khin Swe Win

|- |Accounts Department||Myint Myint Kyi||Khaing Shwe War||Khin Sandar |- |Governor's Office||Win Thaw|| || |- |Currency Management Department||Aung Kyaw Than||

• Ye Aung
• Nyan Tin
• Tun Lin Aung

||

• Kyaw Ye Naing
• Kyaw Min Oo

|- | Foreign Exchange Management Department||May Toe Win||Min Han Soe||Win Htike |- | Monetary Policy Affairs and Financial Institutions Regulation Department||Tin Moe Moe||

• Thet Thet Hla
• Moe Moe Kyi
• Tin Nyo Tun
• Htwe Htwe Aye

||Win Win Than |- |Internal Audit Department|| ||May Khaing Win||Hla Htay |- |Board Secretary's Office||||Nwe Ni Tun|| |- | Yangon Branch |||||| |- |Mandalay Branch|| ||Aung Kyaw Htoo || |}

List of governors[]

#	Name	Took office	Left office
1	Kyaw Nyein	1 July 1954	25 March 1968
2		18 December 1971	31 July 1975
3		8 August 1975	12 August 1981
4		5 September 1981	22 March 1985
5		15 July 1985	11 April 1986
6		11 April 1986	15 October 1987
7		11 January 1988	27 December 1992
8		31 December 1992	2 November 1997
9		20 November 1997	11 April 2007
10		12 April 2007	31 July 2013
11		1 August 2013	2 February 2021
12	Than Nyein	2 February 2021	Present

Source:^[8]

Appointment of governor[]

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

See also[]

• Myanmar kyat
• List of banks in Burma
• Economy of Burma

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[]

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