State Bank Reform
Progress and Outlook for State Bank Reform
The main target of State Owned Banks Oversight and Monitoring Division under Financial Regulatory Department is to reform State Owned Banks, such as Myanmar Foreign Trade Bank, Myanmar Agriculture and Development Bank, Myanmar Economic Bank and Myanmar Investment and Commercial Bank. The role of Financial Regulatory Department in the reform of State Owned Banks is the Ownership on behalf of the Ministry of Planning and Finance. In reforming State Owned Banks, Financial Regulatory Department is carrying out reforms by taking assistance from World Bank to be able to draw up the draft of Ownership Policy .Financial Regulatory Department has formed Supervisory Committee to monitor State Owned Banks. It has been carrying out the tasks under the guidance of Supervisory Committee in order to be firm banking system.
According to FI Law 2016, State Owned Banks need to be transparent banking system that can compete with private banks, to develop Corporate Governance, to know clearly the advantages of Corporate Governance, to abide basic financial principles, and to help develop Capital Market. In doing so, it is needed to reduce the government’s involvement, to reduce the facts that make State Owned Banks stressful, to reduce gradually the role of government in State Owned Banks in the long terms, to provide the opportunities of corporate shareholders, to develop the basic of Corporate Governance, and to reform in accordance with international criteria by choosing suitable model for Myanmar.