Financial Crime World

MYANMAR’S BANKING SECTOR SEES STEADY GROWTH

The Central Bank of Myanmar recently held a meeting in Nay Pyi Taw to discuss the country’s banking sector performance for the fiscal year 2022-2023. The meeting highlighted several key indicators that point to a healthy and growing financial sector.

Key Indicators

  • Savings in private banks have increased by 14.42% compared to the previous financial years.
  • Loans have seen a growth of 7.81%.
  • The credit-to-GDP ratio stands at a healthy 28%.
  • Deposits at the Central Bank of Myanmar and balances have risen by 35% and 36%, respectively.

Turnover and Transactions

The interbank market has experienced a significant increase in turnover, rising to K1,166 billion (98%) compared to last year. The growth is attributed to increased transactions between foreign banks and private banks, as well as the good health of the economy and rising business activity.

Challenges and Compliance

However, Governor Daw Than Than Swe emphasized that compliance with regulations is crucial for the sector’s future progress. Banks, exporters, and importers must adhere to rules set by the Central Bank of Myanmar, including:

  • Reporting export earnings
  • Providing necessary documents
  • Conducting Know-Your-Customer (KYC) and Customer Due Diligence (CDD) procedures for remittances above $10,000

Failure to comply will result in disciplinary action.

Supervision and Strategy

The Central Bank also emphasized the importance of:

  • Supervising lists sent to the Financial Intelligence Unit (FIU)
  • Prioritizing digital banking services
  • Business strategies aligned with market conditions
  • Proper currency diversification

Additionally, the use of the Myanmar Kyat for trade requires approval from the Reserve Bank of India.

Conclusion and Future Plans

The meeting was attended by Deputy Governor of CBM and chairpersons and CEOs of private banks. The Central Bank will continue to monitor the financial sector closely and implement policies to control inflation. As the banking sector continues to grow, it is essential that institutions prioritize compliance with regulations to ensure long-term progress.