Central Bank of Myanmar
The Union Bank of Burma was established on 3rd April 1948 by the Act of Union Bank of Burma 1947. In 1st July 1952, the Union Bank of Burma Act was enacted. The Union Bank of Burma was established with an authorized capital of 40 million Kyats and a paid-up capital of 10 million Kyats by the Government. The People’s Bank of the Union of Burma Act was enacted in 1967 and a monolithic bank known as the People’s Bank of the Union of Burma was established in 1969 with the initial paid-up capital of 200 million Kyats that was fully contributed by the State.
After Myanmar adopted the socialist economic system in 1962, all banks were nationalized. Under the People’s Bank of the Union of Burma Act 1967, a monolithic bank was formed. After the administrative system was reformed in 1972, the Union Bank of Burma Law of 1975 was promulgated and the banking system was recognized. The name of the People’s Bank of Union Bank of Burma was changed to the Union of Burma Bank. Consequently, four banks, namely the Union of Burma Bank, Myanmar Economic Bank, Myanmar Foreign Trade Bank and Myanmar Agriculture Bank emerged. In accordance with the 1975 Bank Law, the initial paid-up capital of the Union Bank of Burma was 200 million Kyats that was fully contributed by the State.
After 1988, the Myanmar economic system has been transformed from the planned economic system to market oriented system. To develop the financial system which is in line with the market oriented by the Government, and to promote the efficiency of financial activities, the Central Bank of Myanmar Law was enacted in 2nd July 1990. The Central Bank of Myanmar was established with the paid-up capital of 500 million Kyats and of which 200 million Kyats were fully paid-up by the State. According to the new government, which was formed on March 30, 2011, the Central Bank of Myanmar was to independently lay down the policies. The Central Bank of Myanmar needs to enact monetary policy independently to control price stability in the domestic market and to preserve the internal and external value of the Myanmar currency, the kyat. According to the new law of the Central Bank (Draft), the Central Bank of Myanmar will be set up with paid up capital of 300 Billion kyat and of which 100 billion kyat will be fully paid up by the State.
The aim of the Central Bank is to control the price stabilities in the domestic market and to preserve the internal and external value of the Myanmar Currency, the kyat. In accordance with its aim, the Central Bank also endeavors to attain such objectives so as to promote efficient payments mechanisms, and the liquidity, solvency, and proper functioning of a soundly based financial system and to foster monetary, credit and financial conditions conductive to an orderly, balanced, and sustained economic development.
The main responsibilities of the Central Bank of Myanmar are;
(a) to act as to role issuer of domestic currency and as a banker to the Government;
(b) to act as an adviser to the Government in respect of economic matters;
(c) to inspect and supervise the financial institutions;
(d) to act as a banker for the financial institutions;
(e) to manage the international reserves of the State and to perform the transactions resulting from the participation of the State in intergovernmental organization and to undertake all the responsibilities in the name of the Government in dealing with the aforesaid organizations on behalf of the Government.
The Head Office of the Central Bank of Myanmar is situated at Building No. 55, in Nay Pyi Taw.