Army retreats from Myanmar Central Bank
The Central Bank of Myanmar will undergo a massive liberalisation programme to end its legacy of military control, with President Thein Sein expected to sign a respective bill in March 2013, which is currently being voted on by law makers.
The country’s head bank was established in 1990 by the military junta, which held domain over the banking sector until it was reopened in 2010, allowing the grounds for 19 private domestic banks to begin operations, followed closely by 20 foreign banks setting up representative offices, including UK-based Standard Chartered.
Western Union, the US-based money transfer service provider, also signed a deal with Myanmar to set up operations in the country via their office in Singapore in December 2012.
Previously only run by military officers, the Central Bank will now face challenges in acquiring human capital with expertise in monetary policy, economic development and finance.
This could be a major impediment to the growth of the banking sector and would require the enlistment of foreign talent.
Fortunately, according to another new law due to be passed, foreign banks will be allowed to enter into joint ventures with local banks, taking a maximum 80 per cent interest in the investment. However, this legislation is not due to be passed until the next financial year, according to Thura Swiss, a Myanmar-based consultancy.
Additionally, foreign banks will reportedly have two years to negotiate the terms of a joint venture structure with local banks.
Plans to overhaul the Central Bank came briefly after Visa entered the emergent economy, setting up ATMs that now accept foreign banking cards.
The Central Bank of Myanmar will undergo a massive liberalisation programme to end its legacy of military control, with President Thein Sein expected to sign a respective bill in March 2013, which is currently being voted on by law makers. The country’s head bank was established in 1990 by the military junta, which held domain over the banking sector until it was reopened in 2010, allowing the grounds for 19 private domestic banks to begin operations, followed closely by 20 foreign banks setting up representative offices, including UK-based Standard Chartered. Western Union, the US-based money transfer service provider, also signed...
The Central Bank of Myanmar will undergo a massive liberalisation programme to end its legacy of military control, with President Thein Sein expected to sign a respective bill in March 2013, which is currently being voted on by law makers.
The country’s head bank was established in 1990 by the military junta, which held domain over the banking sector until it was reopened in 2010, allowing the grounds for 19 private domestic banks to begin operations, followed closely by 20 foreign banks setting up representative offices, including UK-based Standard Chartered.
Western Union, the US-based money transfer service provider, also signed a deal with Myanmar to set up operations in the country via their office in Singapore in December 2012.
Previously only run by military officers, the Central Bank will now face challenges in acquiring human capital with expertise in monetary policy, economic development and finance.
This could be a major impediment to the growth of the banking sector and would require the enlistment of foreign talent.
Fortunately, according to another new law due to be passed, foreign banks will be allowed to enter into joint ventures with local banks, taking a maximum 80 per cent interest in the investment. However, this legislation is not due to be passed until the next financial year, according to Thura Swiss, a Myanmar-based consultancy.
Additionally, foreign banks will reportedly have two years to negotiate the terms of a joint venture structure with local banks.
Plans to overhaul the Central Bank came briefly after Visa entered the emergent economy, setting up ATMs that now accept foreign banking cards.
