Financial Services
From The Report: Myanmar 2016
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Since the political reforms of 2011, a number of significant steps towards liberalisation have been taken in the banking sector. The Central Bank of Myanmar has been given much needed autonomy and ATMs are now allowed in the country. Further aiding accessibility, mobile banking services have been introduced. New private banks are being set up and foreign banks have been granted licences to open branches. After years of stop-and-go liberalisation, a critical mass of changes has been instituted that promises to improve sector performance and greatly contribute to the development of the country. This chapter contains interviews with U Kyaw Kyaw Maung, Governor of the Central Bank of Myanmar; Linus Goh, Head of Global Commercial Banking and Executive Vice President, Oversea-Chinese Corporation; and Daw Chawsu, Head of International Banking, Kanbawza Bank; and a viewpoint from Brad Jones, CEO, Wave Money.

Articles from this Chapter

Overview

Overnight transformation: Local financial institutions are beginning to regain their footing and explore the market
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Since the political reforms of 2011, a number of significant steps towards liberalisation have been taken in the banking sector. The Central Bank of Myanmar (CBM) has been given much needed autonomy and ATMs are now allowed in the country. Further aiding accessibility, mobile banking services have been introduced. New private banks are being set up and foreign banks have been granted licences to open branches (see analysis). After years of stop-and-go liberalisation, a critical mass of changes has…

Interview

Credit where due: OBG talks to U Kyaw Kyaw Maung, Governor of the Central Bank of Myanmar (CBM)
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Interview:U Kyaw Kyaw Maung When will the credit rating bureau be established, and how will it strengthen Myanmar’s financial sector and consumer discipline? U KYAW KYAW MAUNG: Section 75 of the CBM Law, enacted in 2013, established the Credit Bureau and the credit referencing system (CRS) in Myanmar. With the assistance of the International Finance Corporation, regulations for the CRS are being drafted and are set to be issued in FY 2015/16. Based on the regulatory framework and the establishment…

Interview

Grounds for optimism: OBG talks to Linus Goh, Head of Global Commercial Banking and Executive Vice-President, Oversea-Chinese Banking Corporation
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Interview: Linus Goh In recent years Myanmar’s economy has undergone significant restructuring. How would you assess its financial sector reform so far? LINUS GOH: By all accounts, there is much reason to be optimistic. Given the daunting task of liberalising the economy after decades of isolation, the progress achieved by the government in bringing about the reform has so far been very promising. While the agenda ahead remains sizeable, important steps have been taken to address critical building…

Analysis

A key move: Cooperation with international players will benefit both banks and customers
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In 2015 foreign banks started operating in Myanmar for the first time since 1963. A total of nine branch licences were issued. The licences will be highly restrictive at first, and the banks will only be able to do business in foreign currencies, they will be limited to one branch and they will not be able serve retail clients. The step is a key move towards liberalisation for the country, as it will bring capital to a growing economy that needs funding and introduce controlled competition, technology…

Overview

The stock answer: New developments in the country’s financial history are unfolding as the bourse opens for business
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The country’s new stock market, which has been in development since 2008, has been designed to approach or meet international standards in terms of listing rules, intermediation, market infrastructure and supervision. It will be well supported and promoted and will likely make a significant difference in Myanmar. The new bourse will allow for companies in the fast-growing economy to raise capital more easily, and it is seen as contributing to transparency, accountability, efficiency and liquidity.…

Viewpoint

Mobile Money: Brad Jones, CEO, Wave Money, on how mobile financial services can benefit the country
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The government of Myanmar has an ambitious target for financial inclusion, with a goal of bringing financial services to 40% of people by 2020, and having 15% of the population using more than one financial product within the same timeframe. There is a very low base of financial inclusion today, with only 6% of the population having access to more than one product, and these products often do not match customer requirements. These goals will require financial service providers to greatly expand their…

Overview

Opening up: Despite the challenges ahead, the insurance sector is moving forward with confidence
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For most of the last half century Myanmar’s insurance sector was closed and monopolised, but it is now opening up to both domestic and international competition. The transformation has been rapid and across the board. A dozen domestic private insurers have been formed since 2013, while a raft of foreign companies have opened representative offices in the country in that time. Three international insurers have even been allowed to conduct business domestically, although they are limited to the Thilawa…

Interview

Expanding opportunities: OBG talks to Daw Kim Chawsu, Head of International Banking, Kanbawza Bank
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Interview: Daw Kim Chawsu How can unsecured lending be promoted to assist the development of small and medium-sized enterprises (SMEs) in Myanmar? DAW KIM CHAWSU: The SME sector has always been very interesting, considering the diverse players in the market. The government has been trying quite hard in the last two years to make sure that this sector becomes more developed. Both the government and the Central Bank of Myanmar (CBM) have undertaken many initiatives, such as training SMEs. Local banks…