Banking and Finance
Financial structure of Myanmar includes state-owned banks and state Insurance Institution and Private banks. State-owned banks are Central Bank of Myanmar and four specialized banks, namely The Myanmar Foreign Trade Bank, The Myanmar Economic Banks. The Myanmar Agriculture and Rural Development Bank. The Myanmar Insurance is the sole Insurance Institution underwrites various kind of insurances.
In accordance with new banking law licenses to seventeen Domestic Private banks to operate and permit 32 Foreign bank for opening of their representative office in Myanmar.
Central Bank of Myanmar
The Central Bank of Myanmar was established under the Central Bank
of Myanmar Law 1990 and empower Independent operation, to exercise supervision and regulatory authority over financial institutions of both state and privately owned to set reserve requirements for the nation, prescribing discount rate interest rates on loan and deposits, minimum cash margin, ratios of Asset and Liabilities including provisions governing relations of the Central Bank with the government, measures and procedures to formulate and implement monetar policy, exchange rate policy eusol of Foreign Exchange transaction and power of Board of Dissectors to ensure the effective performance of the Central sp; The Central Bank is responsible to conserve the available Foreign Exchange reserve of the country with the instructions from Ministry of Finance Exchange management is administered by the controller of Foreign Exchange of the Exchange management Dept of the Central Bank of Myanmar and the Exchange Management Board.
All external payments are subject to authorization, receipt of all export proceeds and invisible use to be declared to Myanmar Foreign Trade Bank.
Calculation is pegged to SDR at Ks 9.5084 equal to 1 SDR. 2 % margin applied in respect of spot transactions based on fixed SDR-kyat rate.
Buying and selling rates of Deutsche Mar French Frances, Japanese Yen, Pound Sterling, Swiss Franc and United States Dollars Quoted by Myanmar Foreign Trade Bank are determined on the daily calculate of these currencies against the SDR.
As for other currencies, calculated on appropriate cross rate in different money markets.
These are no taxes or subsidies changed on purchases and sales of foreign exchange.
Foreign Exchange Certificates were issued by the Central Bank on 1993, for the convenient of tourist and to enhance foreign Exchange earning. FEC car be used by both resident and non-resident alike for any type of payment within Union of Myanmar., the value of which equal to United States Dollars and it is exchangeable with USD. Pound Sterling and acceptable travelers cheques and credit eases.
Myanmar residents who owned foreign currencies can exchange their foreign currency with Foreign Exchange certificate and they can open foreign currency account with a minimum deposit of 100 FECs at Myanmar Foreign Trade Bank or at Myanmar Investment and Commercial Bank. The organizations which are authorized to obtain FEC from the Causal Bank are state owned commercial banks and Hotels. Which hold FEC changes license, the individuals holding FEC changes license can exchange FEC with Foreign currency.
With effect from 24.4.93. Foreignness and non residents can bring foreign currency not in excess USD 2,000 or its equivalent without declassing to the cash on arrival.
The Myanmar Agriculture and Rural Development Bank
State owned Bank established in 1990 with the intension to promote Agricultural, Livestock and Rural society Economic Enterprise including processing, production. Storage distributions, and marketing relating to Agro and Livestock based Industries. It has a country wide network of (14) regional offices, 164-brameches and 48 agency offices providing short and long term credit for crop production, salt production, livestock, fish and dairy farming etc. The saves get 10% interest on their deposit and the saves is allow borrowing four times his saving at 15% interest concerning farm development.
The Myanmar Economic Bank
Established in 1975 for the purpose of developing commercial and Industrial Banking. It also acts as a fiscal agent of the state providing nationwide commercial banking with 259 branch offices. The functions of the bank are accepting current a/c, saving deposit a/c issuing of saving certificates, Advancing of loan to economic enterprise and personal loans. Financing private business undertaking such as production, trade and services. The bank also acts as agent of the Central Bank for operation of currency chests throughout he country. State economic enterprises and government departments accounts are also maintain by this bank small loan business undertake by this bank was handed over to Myanmar small loan enterprises with effect from 1993/94. To promote boarder trade Myanmar Economic Bank branches has been licensed for handing of Foreign currency Accounts. This bank is also planning to extend its banking business from domestic banking to International Financial Services.
The Myanmar Foreign Trade Bank
This bank specialized in conducting Foreign Exchange operation concerning external trade and non-trade Foreign Exchange operation. Executing contract relating receipt and payment of Foreign Exchange maintain clearing account under bi-lateral counter trade agreement. Myanmar Foreign Trade Bank is also allowed to accept deposits in kyats as well as Foreign Currencies Giving of Loan and Advances bolt seemed and unseemed, Issuing, Accepting, Discount buying, selling and collecting all securities, including Bills of Exchange, sale and purchase of Travelers cheques and Foreign Currencies. Fund Transfer issue and handing of Bank Guarantees. Accepting valuable for safe keeping making statue enquiry of local and foreign firms and banks.Myanmar Foreign Trade Bank is planning to change from a specialized bank to a general commercial bank and also planning for financing of export trade. Correspondent relationship with first class International Banks were established in 58-countries hence transactions can be made with almost any country in the world.