Banking
Individual Documents
Description:
"Connecting Myanmar with Asia for 26 years, Bangkok Bank has been a part of the Myanmar business community, connecting business and promoting trade flows and investment from ASEAN and beyond..."
Source/publisher:
"Bangkok Post" (Thailand)
Date of publication:
2021-01-04
Date of entry/update:
2021-01-07
Grouping:
Individual Documents
Category:
Banking, Burma's economic relations with Thailand, Inter-Communal violence and discrimination - Myanmar - General articles and analysis
Language:
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Description:
"The World Bank’s Board of Executive Directors today approved a $200 million credit from the International Development Association (IDA) to increase agricultural productivity and diversification and enhance market access for Myanmar farmers, with a strong focus on inclusion for smallholder farmers, women and other vulnerable groups.
Measures to contain the spread of COVID-19 in Myanmar—including the temporary shutdown of wet markets and animal feed factories, movement restrictions, the disruption of logistics and transport systems, and tightened restrictions on cross-border flows—has created disruptions in the agriculture and food system. Supply chain disruptions have resulted in market losses and increased feed costs to poultry farmers, small enterprises, and meat producers.
According to the Myanmar Economic Monitor, released by the World Bank yesterday, economic growth is estimated to drop from 6.8 percent in FY18/19 to just 0.5 percent in FY2019/20, with significant downside risks. Agriculture is the source of livelihood for nearly 70 percent of the population and accounts for nearly 30 percent of national GDP and merchandise exports. It is the main sector of employment for the poor with 85 percent of the rural population living in a household with one or more members engaged in agriculture.
The National Food and Agriculture System Project will support parts of the government’s COVID-19 Economic Relief Plan (CERP), which aims to mitigate the economic impacts of COVID-19 and facilitate the country’s economic recovery..."
Source/publisher:
World Bank via "Reliefweb" (New York)
Date of publication:
2020-06-26
Date of entry/update:
2020-06-27
Grouping:
Individual Documents
Language:
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Description:
" The battle for control of Irrawaddy Green Towers could lead to a rare acquisition financing in Myanmar and the country’s largest-ever syndicated loan.
International banks are discussing a US$300m-$400m loan with shortlisted bidders that include private equity firm CVC Capital Partners and edotco Group, a unit of Malaysia’s Axiata Group. The preferred bidder is expected to be picked by early July.
A financing of that size would be Myanmar’s largest syndicated loan and only the second leveraged buyout in the country, if a financial sponsor emerges victorious.
The loan will test liquidity for a market that is seldom on the radar for lenders, many of which don’t have country limits for Myanmar.
“Country limits will present a key challenge for the debt financing,” said a Singapore-based senior loans banker. “It might not be easy to put this together.”
The sale of IGT comes in a subdued period for mergers and acquisitions in Asia Pacific as a result of the coronavirus pandemic. That could encourage lenders to add to their exposure given that an IGT financing is likely to pay higher yields than those that are found elsewhere in Asia.
This year, some borrowers from Myanmar have raised club loans totalling US$370m from half a dozen Asian banks, for property sector credits such as Kajima Myanmar Holding and conglomerate Shwe Taung Group..."
Source/publisher:
"Reuters" (UK)
Date of publication:
2020-06-19
Date of entry/update:
2020-06-19
Grouping:
Individual Documents
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Sub-title:
KBZ Bank is suing the owner of Myanmar Industrial Port over alleged unpaid debts of more than US$200 million, in a case that is symptomatic of the problems facing the country’s leading banks as they seek to resolve legacy non-performing loans.
Description:
"The country's largest private bank, KBZ, is taking a leading businessperson and his company to court, alleging unpaid debts in excess of US$200 million in what is believed to be Myanmar’s largest ever loan default.
KBZ has filed suits against businessman U Ko Ko Htoo and Myanmar Annawa Swan A Shin Company Limited at the Yangon Region High Court, alleging he and the company had failed to repay loans and had accumulated a total debt including interest of around K326 billion (US$221.4 million at current exchange rates).
Ko Ko Htoo is the managing director of MAS and his family holds 100 percent of the company, according to the Directorate of Investment and Company Administration. MAS owns and operates one of the country’s busiest ports, Myanmar Industrial Port in Yangon’s Ahlone Township.
In 2016, the International Finance Corporation provided a $40 million convertible loan to MAS to expand the port but the relationship later soured over corporate governance issues, according to two sources with knowledge of the deal.
The loan was envisaged as the first phase of a $200 million financing package that would also have included $160 million in long-term senior loans from the IFC and other foreign lenders, but the second phase never materialised. IFC confirmed to Frontier that it exited the project in December 2018 after MAS repaid the $40 million loan.
KBZ commenced litigation against Ko Ko Htoo and MAS in December 2019 and this month the bank began presenting evidence to support its claim. Frontier understands it is the largest such claim to be heard in a Myanmar court, and that, taken together, Ko Ko Htoo and MAS are possibly the largest private sector debtor in the Myanmar banking system.
At a January 13 hearing attended by Frontier, lawyers for KBZ alleged that Ko Ko Htoo owed the bank more than K63 billion in principal and interest as of October 30, 2019. In a separate hearing the following day they alleged that MAS had accrued debt of K262.8 billion to November 6, 2018..."
Source/publisher:
"Frontier Myanmar" (Myanmar)
Date of publication:
2020-01-22
Date of entry/update:
2020-01-24
Grouping:
Individual Documents
Category:
Foreign Debt, Banking, Industry - General articles
Language:
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Description:
"The World Bank forecast Myanmar's economy growth to reach 6.4 percent in present fiscal year (FY) 2019-2020 which started in October, according to the Myanmar Economic Monitor Dissemination Workshop on Tuesday.
The new World Bank report "The Myanmar Economic Monitor for December 2019" was launched at the workshop which was held in capital city Nay Pyi Taw.
The country's economic growth is estimated to show a gradual increase from 6.2 percent in FY 2017-2018 and from 6.3 percent in FY 2018-2019 which ended in September last year.
The report said that the reforms have lifted Myanmar quickly in the recent World Bank Group's Doing Business Index, underlining that firms in Myanmar need greater access to inputs including finance, land, and skills, better connectivity and an enabling business environment to support a responsible private sector.
The report also highlighted that the presence of armed actors and conflicts add challenges for business in much of Myanmar..."
Source/publisher:
"Xinhua" (China)
Date of publication:
2020-01-14
Date of entry/update:
2020-01-17
Grouping:
Individual Documents
Category:
Burma's economic relations with China, Banking
Language:
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Sub-title:
Local subsidiary viewed as best model
Description:
"Siam Commercial Bank is seeking approval from the Central Bank of Myanmar (CBM) to upgrade SCB's representative office to operate under a bank subsidiary licence in the neighbouring country.
The subsidiary model would offer SCB greater opportunities to do banking business in Myanmar, said chief executive Arthid Nanthawitthaya.
Among the three options that the CBM has offered to foreign banks, a subsidiary licence is the most suitable model for SCB, Mr Arthid said.
In the event that SCB gains a subsidiary licence in Myanmar, the bank must inject fresh funds to upgrade its representative office to a subsidiary bank as required by CBM regulations, he said.
The CBM permits foreign banks to operate business in Myanmar under three licence types: subsidiary, foreign bank branch and equity holding in a local bank..."
Source/publisher:
"Bangkok Post" (Thailand)
Date of publication:
2020-01-16
Date of entry/update:
2020-01-16
Grouping:
Individual Documents
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Description:
"Kasikornbank (KBank) wants to expand its footprint in Myanmar, acquiring a sizeable stake in a bank there.
If the acquisition deal goes through, it will mark the second purchase of a stake in an overseas financial institution by a Thai bank in two months, after Bangkok Bank's acquisition of Indonesia's PT Bank Permata worth US$2.7 billion (81.3 billion baht).
KBank is studying a suitable business model in Myanmar after the Central Bank of Myanmar (CBM) opened to more business opportunities for foreign banks, said co-president Kattiya Indaravijaya.
Foreign banks are allowed three licence types in Myanmar: establishment of a commercial bank as a subsidiary, a foreign bank branch and application for equity participation with a local bank..."
Source/publisher:
"Bangkok Post" (Thailand)
Date of publication:
2020-01-15
Date of entry/update:
2020-01-15
Grouping:
Individual Documents
Category:
Thailand-Burma relations, Banking
Language:
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Description:
"With gross domestic product (GDP) growth consistently above 5 percent throughout this decade, and in double digits for much of the previous decade, Myanmar has been one of South East Asia’s fastest-growing economies for quite some time. What’s more, this newly liberalised nation is being touted to likely continue growing expeditiously well into the 2020s. That said, recent years have seen Myanmar’s growth showing a distinct sign of waning from its once lofty heights: Some believe this ongoing slowdown may continue over the next few years. The International Monetary Fund (IMF), for instance, recently stated that Myanmar’s economy appears to be losing momentum. “Myanmar’s economy is expected to gain steam over the medium term albeit at a somewhat slower pace than previously envisaged and subject to greater downside risks” was the IMF Executive Board’s recent assessment. Part of the concern over Myanmar’s economic outlook is directed at the National League for Democracy (NLD) government, which came to power in 2016 after a thumping election victory put an end to decades of military rule. But since then, the NLD has come in for much criticism for the economy’s overall performance, as well as the slow pace at which reforms are being enacted that would enable Myanmar to make the full transition into a liberalised market economy.
Perhaps the economic underperformance of recent years is understandable. After all, achieving peace in all regions of the nation continues to remain elusive, meaning that the government has been primarily focused on reconciliation before it can move ahead with other priorities, such as bringing about economic prosperity. Even today, tensions persist, not only between the NLD and the military but also between the military and armed ethnic groups in various parts of the country..."
Source/publisher:
"International Banker"
Date of publication:
2019-06-26
Date of entry/update:
2019-12-16
Grouping:
Individual Documents
Category:
Burma/Myanmar's relationship with the Global Economy, Banking, Burma/Myanmar's Foreign relations, general
Language:
more
Description:
"50 Community groups from Burma country and overseas signed a petition rejecting the World Bank’s proposed “Peaceful and Prosperous Communities Project” (PPCP), planned for conflict-affected areas in Eastern Burma..."
Source/publisher:
KIC (Karen Information Center)
Date of publication:
2019-11-27
Date of entry/update:
2019-12-02
Grouping:
Individual Documents
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Description:
"WILLIAMS MEDIA spoke with Colliers International Myanmar who understands that foreign institutions are most likely to choose Grade A or Grade B quality office space as the Central Bank of Myanmar plans to allow more foreign banks to provide services. Demand for quality office spaces is predicted to rise given the reforms regarding the easing of sanctions for foreign banks and foreign insurance providers.
SoeThein, deputy governor of the Central Bank of Myanmar (CBM), said Myanmar’s financial sector reforms gaining momentum; this will further the country plans to allow more foreign banks in to provide limited services.
Click here to see profiles of Leading Yangon Office Buildings
Eleven Myanmar reported that he said the third round of issuances of licences for foreign banks would be opened by the end of this year. The CBM’s foreign banks selection committee already approved 15 criteria for the selection of an eligible consulting firm to provide advisory services for the process of awarding licences to foreign banks that already have a representative office in Myanmar.
SoeThein said the CBM would finalise the selection of the consultancy firm by early next month. Myanmar will select only one consultancy firm among the four finalists, Deloitte Touche Myanmar Vigour Advisory Ltd; PricewaterhouseCoopers (PWC) Myanmar Co; EY UTW Advisory Ltd; and Roland Berger Co.
“In late May, we invited a total of eight consultancy services to submit proposals for providing advice on the selection of foreign banks. Half of them submitted RFP [request for proposal] on June 24,” he said.
According to Colliers demand for quality office spaces is predicted to rise given the reforms regarding the easing of sanctions for foreign banks and foreign insurance providers..."
Source/publisher:
"RETALK ASIA"
Date of entry/update:
2019-09-14
Grouping:
Individual Documents
Category:
Banking, Rule of Law - global and regional
Language:
more
Description:
"As recently as 2013, CNN described Myanmar?s banking system as ?outdated and debased, open for decades to abuse by the previous regime, and shunned by about 90 percent of the population.”
The article described the story of a man who kept only a small portion of his money in the bank, and he only did that for fear of a house fire. The majority of his wealth he held in cash, in his home.
That story exemplified the skepticism with which people viewed the banking system, and the situation is not entirely different today. Mistrust of the financial system pervades the majority of Myanmar?s 53 million people.
?The banking system doesn?t cater to the mass market,” said Brad Jones, CEO of mobile financial services provider Wave Money.
But the circumstances are changing, thanks to Wave Money and other financial tech platforms that are democratizing financial services in the country. Access to online services has skyrocketed in Myanmar in recent years, with mobile phone penetration reaching at least 50% and 80% of first-time phone buyers choosing smartphones. Mobile phone penetration was roughly 10% in 2014...
One thing most people in Myanmar?s tech community will tell you is that change is happening fast and not always in predictable ways. Regulations and business opportunities can take months to come together but once they do, businesses must be ready to move immediately.
?It?s glacial and it?s lightning,” Kershaw said.
?All parts of the Myanmar financial system are trying to develop simultaneously, as everything is starting from a low base,” Kloiser-Jones said.
For a country that only reopened to foreign investment within the past decade, the rate of change is unprecedented.
?I?ve never witnessed anything like what I?ve experienced in that market,” Kershaw said. ?It?s like four-dimensional chess and the rules change every day.”"
Casey Hynes
Source/publisher:
Forbes
Date of publication:
2016-10-31
Date of entry/update:
2016-11-01
Grouping:
Individual Documents
Category:
Banking
Language:
English
more
Description:
"Amid widespread anxiety over the impact of the Central Bank?s decision to revoke thousands of US dollar accepter and holder licences, a senior official has promised authorities have no plans to return to old ways..."
Aye Thidar Kyaw
Source/publisher:
"Myanmar Times"
Date of publication:
2015-10-21
Date of entry/update:
2015-10-22
Grouping:
Individual Documents
Category:
Banking
Language:
English
more
Description:
"The Central Bank of Myanmar (CBM) has revoked foreign exchange licences held by hotels, airlines and thousands of other businesses, in a bid to counter dollarisation..."
Aye Thidar Kyaw
Source/publisher:
"Myanmar Times"
Date of publication:
2015-10-19
Date of entry/update:
2015-10-22
Grouping:
Individual Documents
Category:
Banking
Language:
English
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Description:
ABSTRACT"
"This study focuses on financial sector reform-it?s impacts on banking sector in CLMV
during 1990s. The objective of this study are (a) to provide an overview of the major financial
reform and the impacts of interest rate deregulation on financial sector development in the
CLMV countries; (b) to examine fiscal imbalances financed by monetary expansion that
increases inflation and thus represses the banking system; (c) to evaluate the impact of high
reserve requirements on banking sector; and (d) to analyze the effect of capital flight and
dollarization on banking sector.
One of the major financial reforms in CLMV is interest rate liberalization together
with controlling inflation, this results in a positive real interest rate that contributes to
financial deepening. Financial depth, as measured by broad money to Gross Domestic Product
appears to increase in these economies, especially in Cambodia, Laos, and Viet Nam. The
growth of broad money was mainly contributed by foreign currency deposit particularly in
Cambodia and Laos. Viet Nam, however, local currency deposit was the main contributor of
growth. While in Myanmar, the growth of broad money started to decline as a result of real
ii
negative interest rate. In some of CLMV, banks? lending portfolios have been weakening
because of direct lending to the priority sector. Apart from that the major factor that weakens
the financial intermediation is the inflation acceleration particularly in Laos and Myanmar.
Inflation is a consequence of budget deficit financed by borrowing from financial system
since these countries are at the early stage of financial market development.
Laos and Myanmar pursued credit expansionary policy particularly providing loans to
public sector that often results in increased fiscal deficit. By expanding public sector
borrowing, government invested in the long term infrastructure projects and provides the
subsidized loans to SOEs or SEEs who exhibited weak financial performance and loss making.
The greater amount of public sector loans, the more non performing loans occur in the
banking system, eventually discouraging financial intermediation.
Another factor discouraging the financial intermediation is high reserve requirements
in Cambodia, Laos, and Myanmar. The high reserve requirements imposed by central bank
raised the margin between lending rate and deposit rate. As a result, this has reduced the
amount of loanable fund for the expansion of productive investment projects, creating
hindrance to the financial intermediation functions.
Financial liberalization together with inflationary finance induce capital flight,
dollarization and misallocation of resources. In the situation, when a country has
underdeveloped financial market, there could be capital flight or dollarization; as a result, this
leads to financial disintermediation.
The banking system in Myanmar is not allowed to offer foreign currency deposits; the
response is increase in foreign currency holding outside banking system or holding durable
assets. Myanmar maintains interest rate ceiling lower than the market determined rate and the
overvaluation of fixed exchange rate that encourages the capital flight
To avoid capital flight, the governments allow commercial banks to offer foreign
currency deposits in Cambodia, Laos, and Viet Nam. The result is that foreign currency
deposits grow rapidly and there has limited opportunities for lending in foreign currency. The
option available for banks is to transfer the excessive fund in foreign currency to deposit in
foreign banks and this lead to a so called capital flight and final outcome is hindrance to the
financial depth."
TIN TIN HTWE
Source/publisher:
Graduate School for International Development and Cooperation Hiroshima University
Date of publication:
2005-09-00
Date of entry/update:
2010-01-01
Grouping:
Individual Documents
Category:
Banking
Language:
English
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Description:
"...The transformation of Burma into a fully institutionalised liberal democracy based
on a market economy will be a multi-faceted process. One aspect of this must be,
however, the creation of a properly functioning financial system. Financial institutions
are integral to economic development. In a market economy they provide the central
coordinating mechanism through which resources are allocated. At best, they do
this in ways that maximise the wealth and welfare of their respective national
economies.
The foundations of a proper functioning financial system are transparency,
accountability and the effective transmission of market signals. Burma?s existing
financial system, unfortunately, possesses few of these virtues. Worse, its principal
financial institutions may be little more than facades for the activity of criminals
and a narco-state.
Reforming Burma?s financial system, in particular the banks that make up its core,
will require the privatisation of its state banks, the legitimisation of its existing
private banks and the opening up of the sector to foreign competitors. Before these
measures can be undertaken, however, fundamental institutional reform will be
necessary. Burma must become an economy and a society ruled by law and not the
whim of generals. The Burmese people must have rights to property in order to
best liberate their latent skills and energy. Financial regulation must adopt practices
that have been demonstrated to work elsewhere. Macroeconomic policy must leave
the irrational world and enter that which reason and history teaches us can achieve
all that governments are able. Burma?s political economy, in short, awaits its
transformation..."
Sean Turnell
Source/publisher:
The Burma Fund (Technical Advisory Network of Burma) WP07
Date of publication:
2002-11-00
Date of entry/update:
2007-06-10
Grouping:
Individual Documents
Language:
English, Burmese
Format :
pdf
Size:
287.24 KB
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Description:
"Burmese banks are thriving, even as the country?s economy suffers its worst slump in years.
Their secret, say businessmen in the know, is the nexus of generals and drug lords..."
Maung Maung Oo
Source/publisher:
"The Irrawaddy", Vol. 9, No. 2
Date of publication:
2001-02-00
Date of entry/update:
2003-06-03
Grouping:
Individual Documents
Language:
English
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Description:
February 26, 2003—"Burma?s banks are more like a dubious "Ponzi" or pyramid scheme than well-run commercial banks. Between 1962 and 1988, the banks in Burma were all state-owned, and lent primarily to state owned enterprises. After 1988, the declaration of a so-called open market economy made way for private commercial banks, but they were never built on strong capital..."
Kyi May Kaung
Source/publisher:
"The Irrawaddy" Commentary Archive
Date of publication:
2003-02-26
Date of entry/update:
2003-06-03
Grouping:
Individual Documents
Category:
Banking
Language:
English
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Description:
"A country?s financial system provides its means of exchange and is the mechanism through which its resources are mobilised and allocated. The financial system is the arena in which economic risk can be managed, government debt can be financed, foreign capital can be accessed and managed, and it is the vehicle through which monetary policy can be implemented. According to Larry Summers, the former Secretary of the US Treasury, a country?s financial system provides the ?wheels? for its development...The foundations of a proper functioning financial system are transparency, accountability, governance and the effective
transmission of market signals. Burma?s financial system possesses few of these virtues. Burma?s banks do not fulfil the role allotted to such institutions in allocating resources in ways beyond the whims of the military. Worse, they may be little more than facades for the activity of criminals and a narco-state. Unfortunately the history of financial sector reform in Burma does not lend optimism to the hope that this might change without more fundamental changes in the country. Like so much else in Burma, the emergence of a viable banking system must await the political reform that is so long overdue." Extra keywords: money laundering, joint venture regulation, exchange controls.
Sean Turnell
Source/publisher:
Burma Economic Watch
Date of publication:
2001-07-00
Date of entry/update:
2003-06-03
Grouping:
Individual Documents
Language:
English
Format :
htm
Size:
105.3 KB
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Description:
"... Burma is currently undergoing one of its periodic monetary and financial crises. Unusually, however, this time the crisis is not a characteristic de-monetisation episode, but a failure of confidence in the country's nascent private banking sector. In this sense the current crisis is probably less immediately destructive of the 'wealth' of ordinary Burmese than previous dramas (as shall be examined below), but its longer-term damage to Burma's economy and to key institutions is likely to be severe indeed. Trust is the foundation of banking and the key ingredient of a country's social capital. There must be little of this (already scarce) commodity in Burma today.
The following is an attempt to make sense of some of the developments that have been taking place in Burma's banking sector in recent weeks. It suffers from the usual information difficulties that come with attempting real-time commentary on the opaque world of Burma's political economy. It is hoped, nevertheless, that it might prove useful in at least shining a dim light into some very dark corners. It is not a comprehensive account of individual events either, but it arguably provides a sufficient outline upon which to begin a process of analysis. Extensive use is made throughout of a more detailed examination of the structure of Burma's banking system contained in Turnell (2002). We have made wide-spread use of many other sources, where possible indicated below. Finally, comments and suggestions would be greatly welcomed.
Sean Turnell, Alison Vicary
Source/publisher:
Burma Economic Watch
Date of publication:
2003-03-06
Date of entry/update:
2003-06-03
Grouping:
Individual Documents
Language:
English
Format :
htm
Size:
81.15 KB
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Description:
How much further will Burma?s banks slide?...After the crash of more than a dozen finance houses that funded outside business ventures with their depositors? money, anxious bank customers rushed to withdraw their savings, thus precipitating a rundown on reserves of the national currency, the kyat.
Other banks in Burma face similar problems. At the end of last year, top bankers were forecasting a boom for 2003. Last month, however, predictions were rife that the collapse of financial houses would drag down all the 20 banks with 350 branches nationwide..."
Naw Seng
Source/publisher:
"The Irrawaddy" Vol. 11, No. 2
Date of publication:
2003-03-00
Date of entry/update:
2003-06-03
Grouping:
Individual Documents
Category:
Banking
Language:
English
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Description:
Sean Turnell,
Economics Department, Macquarie University,
Sydney, Australia.
Abstract: "A country's financial system plays a critical role in its economic development. It is the vehicle through which the means of exchange are created, resources are mobilised and allocated, risks are managed, government spending is financed, foreign capital is accessed, and it is via financial institutions that individuals can protect themselves against economic fluctuations. Notwithstanding this essential role, Burma has not had a properly functioning financial system for four decades. The present system, an unstable mix of monolithic state-owned institutions and a cohort of new private banks of dubious legitimacy, is a serious brake on Burma's economy. This paper examines the role financial institutions can play in a country's development, explores how Burma's current system falls far short of this ideal and broadly outlines how it might be reformed. It argues the case for the standard remedies professed by economists of liberalisation, stabilisation and privatisation but, critically, suggests that these must be preceded by more fundamental reforms that create the legal, regulatory and other infrastructure that are the prerequisites of a modern, and efficient, financial system. ..". Keywords: Burma; Banks; Regulation; Supervision; Financial Liberalisation; Economic Development.
Paper presented to the 1st Collaborative International Conference of the Burma Studies Group, Gothenburg, Sweden,
21-25 September 2002
Sean Turnell
Date of publication:
2002-09-25
Date of entry/update:
2003-06-03
Grouping:
Individual Documents
Language:
English
Format :
pdf doc htm
Size:
238.51 KB 187 KB 380.24 KB
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