Strengthening Myanmar’s banking sector is key to economic growth

Central to Myanmar’s economic development is the reform of its finance sector and specifically its banking sector. Banks play a fundamental role in the transformation of market economies. Recently the government has enacted a series of laws intended to reform and strengthen its banking institutions to restore investors’ confidence and to make capital more accessible. […]

Central Bank Issues Regulation to Avoid Large Risk Exposure

The Central Bank of Myanmar (CBM) has issued a regu­lation in efforts to curb the risks faced by lenders when taking on large ex­posure loans. The Large Exposure Regulation mandates that banks cannot lend be­yond 20 percent of their core capital to any single borrower, thus minimizing the bank’s exposure should the borrower de­fault. “Capping […]

Central Bank to approve credit bureau to ease up loan services

For the setting up of a credit bureau, Myanmar Banks Association and a Singapore-based company – which has been operating a credit bureau – have submitted forms to the Central Bank of Myanmar that will allow collaboration between the two organisations, the official said on April 26. On March 31, the Central Bank of Myanmar […]

Thilawa SEZ Commences Second Phase of Project

​​ RANGOON — Rangoon’s Thilawa Special Economic Zone (SEZ) management committee members said they expect to complete the 250-acre second phase of the project in mid-2018, during a commencement ceremony at the SEZ’s new Zone B on Friday morning. Thilawa SEZ is located between Kyauktan and Thanlyin townships, 14 miles from downtown Rangoon. The project […]

Central Bank May Liberalise Trade Financing for Foreign Banks

​​ The Central Bank of Myanmar may allow foreign banks to launch trading services if local banks are unable to facilitate trade financing for importers and exporters, Central Bank director general U Win Thaw told the Myanmar Times. “The Central Bank has already allowed local private banks to do trade financing. If they [local private […]

CB issues Reminder on Currency use but Dollar Shortage Remains Issue for Banks

​​ The Central Bank has reissued an instruction that the kyat should be used in all local transactions in an effort to help stabilise the exchange rate. But a senior official in the foreign exchange management department has said the regulator also wants to help route more foreign currency transactions through banks. The Central Bank […]

Central Bank Exchange Rate Reforms to Start From January Next Year

​​ After years of complaints that its US dollar reference rate fails to reflect market reality, the Central Bank has announced a shift in how it determines the figure. In an effort to narrow the gap between the bank’s rate and that of the wider market, the regulator has announced it will start basing its […]

Myanmar Firms Ponder Change As US Sanctions End

The end of US sanctions on Myanmar is forcing local businesses to take a hard look at their operations and consider how they will compete when international firms have gained a significant foothold in the country’s major industries, local economists and entrepreneurs have said. “People have said the reason Myanmar produces lower quality goods is […]

Central Bank manoeuvres rise in kyat value

The value of the Myanmar kyat has risen due to the efforts of the Central Bank of Myanmar, according to Xinhua News Agency. The kyat value rose gradually starting from the beginning of this year following a year of declining value compared to the US dollar, according to local money changers. On 2 April, US$1 […]

Surging kyat closes foreign exchange desks

  Local banks suspended foreign currency exchange services yesterday as the kyat surged in value against the dollar, with financial industry sources variously pointing the finger at political speculation, market rumours and a lack of clear Central Bank policy. The kyat strengthened to K1248 against the dollar yesterday, according to the Central Bank’s rate, after […]