Inter Group
  • Our Services
    • Myanmar Business Services >
      • Myanmar Incorporation
      • Corporate Secretary
      • Stay Permit Application
      • Human Resources Management
      • Accounting, Taxation & Audit
    • Singapore Business Services >
      • Singapore Incorporation
      • Corporate Secretary
      • Accounting
      • Taxation
      • Trade Support
    • International Business Services
  • Resources
    • eNewsletters
    • Frequently Asked Questions
  • Community
    • Blog
    • Press Releases / Milestones
    • Facebook
    • LinkedIn
    • Twitter
  • About Inter Group
    • Why Us?
    • Our CEO
    • Our Awards & Recognition
    • Corporate Social Responsibility
    • From Our Clients
    • Join Us!
  • Contact

A Look into Myanmar's Services Sector: Banking & Finance

1/12/2016

41 Comments

 
As Myanmar’s economy continues to grow, foreign investors will always have ample opportunity to establish their business presence. In the next few months, follow us as we look into Myanmar’s individual services sector, highlighting their specific challenges, opportunities and its general outlook in the long term.
 
Sectors we have covered:
Hotels and Tourism Part I – Tourism: an Economic Generator & Infrastructure Constraints
Hotels and Tourism Part II – Opportunities, Government Support & Outlook
Telecommunications – More than Just Talk-time, Challenges, Opportunities and Outlook
Transportation – Better Transport to Boost Economic Growth, Challenges, Opportunities and Outlook
Retail – Myanmar’s Economy Fueling the Retail Boom, Challenges, Opportunities and Outlook

 
A Look into Myanmar's Services Sector: Banking & Finance
Following the economic reforms brought by Myanmar's democratic transition, investors are strategically looking for productive investment opportunities in the country. 
​
Banking & Finance: the Economic Driver
Banks play a major role in financial markets by engaging high-growth activities that generate prolific investment for the economy. But the US sanctions imposed on Myanmar since May 1997 have hindered investments and export-import financing.
 
However in May 2016, state-owned banks namely, Myanma Economic bank (MEB), Myanmar Investment and Commercial Bank (MICB) and Myanmar Foreign Trade Bank (MFTB) were removed from the US sanction list. This only marks the beginning of the rise of the banking and finance sector in Myanmar.
 
Prior to the lifting of sanctions against the three state-owned banks, the Financial Institutions Law was enacted on 25 January 2016, has defined the prudential norms, a stronger regulatory framework and contain detailed guidelines for both domestic and foreign financial institutions. It is hoped that with the introduction of this new law, both banks and financial institutions in Myanmar will progress towards the overall development of the sector.
 
The following chart shows the increase in net profit of the banking sector for the five fiscal years from 2007 to 2012.
Picture
Source: Central Bank of Myanmar Annual Report 2011-2012
​

Observe that the profits recorded in FY2010-2011 doubled from the previous FY. This is partly because of the presence of 19 local private banks that have been granted licenses to provide domestic commercial banking services from 30th November 2010 onwards. With further developments planned for this sector, the net profit is projected to continue on an increasing trend year on year.
 
In addition to financial intermediaries such as banks, insurance companies and pension funds; government treasury bonds are issued to facilitate the development of Myanmar's financial market. Moreover the country have also launched its first ever stock exchange "YSX" which have commenced since 25th March 2016 in spite of having only a few listed companies in the exchange.
 
Challenges
Even as the presence of foreign banks pose challenges, local banks have their own set of challenges to deal with such as human resources, technological infrastructure, image building, implementation of the new Financial Institutions Law and the exchange rate. This was cited by a panel discussion during the launch of GIZ Banking report: "Myanmar's Financial Sector: A Challenging Environment for Banks".
 
And although local banks have already introduced various payment modes such as through cards, the internet and mobile banking, by and large the locals still prefer to make their transactions in cash. With little reliance on banks, these cash transactions impact the interest rates, exchange rates and the inflation rates.
 
Opportunities
In efforts to accelerate economic development within the country, the Central bank of Myanmar granted operational licenses to a number of international banks in the past few years. It is hoped that with the presence of these international banks, it will improve the country's banking infrastructure. However this move of granting foreign banking licenses to international banks did come under resistance from local banks. Although these banks aim to support their fellow countrymen; local bank raise concerns that this would erode their market share. Addressing the concerns, local banks are still permitted to provide loans to local businesses, despite the lower costs offered by foreign banks. This somewhat gave the local banks added secutity over their market share.
 
Joint ventures and wholly foreign-owned enterprises currently reap the full benefits directly from these foreign banks. However, as foreign banks are allowed to lend to local banks and financial institutions, this gave local banks additional support should they consider expanding their operations.
 
Forecast
The banking and finance sector is vital for any economy; as a well-established banking and financial system strengthens the ongoing reforms and minimizes the sector's risk. A fully functioning banking and finance sector will be conducive to a nation's economy.
 
Many local and international businesses are looking to obtain loans and this have created an increase in demand to borrow from banks. Although banks; both local and foreign, have already begin to issue loans, more of such banks and lenders are welcomed to set-up operations in Myanmar, in anticipation of the increase in businesses within the country.
 
Ultimately, as Myanmar's banking and finance sector seeks further liberalization, it will continue to face immense challenges at the initial stages. Nevertheless, there is always significant opportunities for foreign direct and portfolio investments as Myanmar continues very vigorously to improve and enhance its banking and financial systems.
 
​----------
​
Editor’s Note: For those who have missed out on the other services sectors, click below to read:
Hotels and Tourism Part I – Tourism: an Economic Generator & Infrastructure Constraints
Hotels and Tourism Part II – Opportunities, Government Support & Outlook
Telecommunications – More than Just Talk-time, Challenges, Opportunities and Outlook
Transportation – Better Transport to Boost Economic Growth, Challenges, Opportunities and Outlook
Retail – Myanmar’s Economy Fueling the Retail Boom, Challenges, Opportunities and Outlook
 
In the next blog post discussing Myanmar’s services sector, we will be looking at the telecommunications sector.
Click here to read on the Telecommunications sector.
41 Comments
pension loans link
19/12/2020 07:33:04 pm

Loans against pension are basically loans which is one of the best ways to get money you need for various things. Pension Key Global does it all for you with quick access to early loans.

Reply
pension loans link
31/1/2021 07:47:45 pm

Getting pension loans on your UK pension fund is more practical than getting a new loan. In many ways you will be using your own pension fund before reaching the age of 55. This is one of the reasons they are so popular in UK.

Reply
sitherens link
6/7/2022 09:32:49 pm

Nice article Thanks for sharing this informative post, Keep posting!

Reply
dedektorler link
2/8/2022 03:30:42 pm

Really informative article, I had the opportunity to learn a lot, thank you. https://www.ugurelektronik.com/

Reply
instagram takipçi satın al link
2/8/2022 10:10:54 pm

Really informative article, I had the opportunity to learn a lot, thank you. https://takipcialdim.com/ucuz-takipci-satin-al/

Reply
instagram takipci satin al link
3/8/2022 02:43:51 pm

Really informative article, I had the opportunity to learn a lot, thank you. https://www.takipcikenti.com/instagram/turk-takipci/

Reply
lead generation for finance companies link
4/8/2022 02:50:23 pm

Finance is a competitive sector, consequently, finance companies need to place an emphasis on digital marketing to ensure they are bringing in an adequate number of clients. We help businesses scale up. Pay for performance. Please visit our website to generate more finance leads.

Reply
okex kayıt link
9/8/2022 06:50:19 pm

Really informative article, I had the opportunity to learn a lot, thank you. https://www.smsbankasi.net/2022/01/okex-nedir-nasl-kayt-olunur-nasl.html

Reply
takipçi satın al link
12/8/2022 04:34:34 am

Really informative article, I had the opportunity to learn a lot, thank you. https://bit.ly/instagram-takipci-satin-al-takipci

Reply
pfalzautomobile link
17/8/2022 03:17:14 pm

Good article, very informative thank you so much i learned alot.

Reply
commercial finance link
17/8/2022 07:26:23 pm

Thanks for sharing your ideas and thoughts! To find out more about bridging finance and how to optimise your chance of a successful bridging loan application, please review the Blueray Capital Bridging Finance Guide.

Reply
Mobil ödeme bozdurma link
20/8/2022 04:38:22 am

Really informative article, I had the opportunity to learn a lot, thank you. https://guvenbozum.com/

Reply
KayhanTuran link
5/9/2022 08:33:32 pm

Good article, very informative thank you so much i learned alot from this and thanks again..

Reply
commercial finance link
7/9/2022 03:22:49 pm

Thanks, I am really happy with these great tips! Northampton for that period of time we have built up a excellent reputation in creating and designing good quality websites in the area, you can see some examples of our work within the portfolio section.

Reply
pay vat online link
8/9/2022 04:44:55 pm

Thanks for sharing such a informative blog! We know you need to keep a grip on costs, so our monthly fee starts from £0, including free ATM withdrawals and transactions. If you don’t use your account one month, you don’t pay the monthly fee.

Reply
site kurma link
12/9/2022 06:29:06 am

Really informative article, I had the opportunity to learn a lot, thank you. https://kurma.website/

Reply
mobil ödeme bozdurma link
12/9/2022 07:22:09 pm

Really informative article, I had the opportunity to learn a lot, thank you. https://odemebozdurma.com/

Reply
website kurma link
15/9/2022 08:16:14 am

Really informative article, I had the opportunity to learn a lot, thank you. https://bit.ly/site-kurma

Reply
site kurma link
30/9/2022 10:34:06 pm

It's great to have this type of content. Good luck with your spirit. Thank you. https://bit.ly/site-kurma

Reply
cerkezkoy escort link
5/10/2022 06:33:20 am

I think this post is useful for people. It has been very useful for me. Looking forward to the next one, thank you. https://escortnova.com/escort-ilanlari/tekirdag-escort/cerkezkoy-escort/

Reply
canakkale escort link
5/10/2022 08:13:53 pm

It was a post that I found very successful. Good luck to you. https://escortnova.com/escort-ilanlari/canakkale-escort/

Reply
mut escort link
6/10/2022 06:38:26 am

I follow your posts closely. I can find it thanks to your reliable share. Thank you. https://escortnova.com/escort-ilanlari/mersin-escort/mut-escort/

Reply
odunpazari escort link
7/10/2022 05:26:47 pm

I think the content is at a successful level. It adds enough information. Thank you. https://escortnova.com/escort-ilanlari/eskisehir-escort/odunpazari-escort/

Reply
sogut escort link
8/10/2022 05:13:43 am

Thank you for your sharing. I must say that I am successful in your content. https://escortnova.com/escort-ilanlari/bilecik-escort/sogut-escort/

Reply
pay vat online link
13/10/2022 10:30:44 pm

Really Informative! Create a custom invoice with ANNA Money free invoice generator. The online invoice maker easily creates invoices that you can download, print or send online.

Reply
outbound customer service link
26/10/2022 12:52:26 pm

It is hoped that with the presence of these international banks, it will improve the country's banking infrastructure.I truly appreciate your great post!

Reply
Korsan Taksi link
13/11/2022 01:42:16 pm

Sitemizi ziyaret et: https://taksikenti.com/

Reply
evde iş imkanı link
23/11/2022 09:48:18 am

Tıkla evde calismaya basla: https://sites.google.com/view/evden-ek-is/

Reply
betinfo link
23/11/2022 01:04:13 pm

It was a successful post.These types of posts are very helpful.

Reply
mrbahis link
7/12/2022 12:33:56 pm

Congratulations for the successful article. I can't wait for the sequel.

Reply
vbet link
9/12/2022 08:07:07 pm

Congratulations, it's a nice post. I'm always waiting for such nice posts in the future.

Reply
sportsbet link
10/12/2022 08:37:19 pm

I follow your work closely. Congratulations for this beautiful content.

Reply
takipçi satın al link
11/12/2022 07:16:20 am

kaliteli düşmeyen takipçi satın al: https://takipcialdim.com/

Reply
tiktok takipçi satın al link
11/12/2022 09:39:07 am

Tiktok takipçi satın almak için tıkla: https://takipcialdim.com/tiktok-takipci-satin-al/

Reply
instagram beğeni satın al link
11/12/2022 09:39:54 am

İnstagram beğeni takipçi satın al: https://takipcialdim.com/instagram-begeni-satin-al/

Reply
sms onay link
17/12/2022 02:55:53 am

Hemen Göz At: https://www.smsonay.com/

Reply
takipçi satın al link
17/12/2022 02:56:45 am

uygun fiyatlardan takipçi Hemen Göz At: https://takipcim.com.tr/

Reply
Underfabric link
20/12/2022 07:55:01 pm

Good article, Im about to learn something very good with this article thanks for share keep doing it..

Reply
casino siteleri link
29/12/2022 10:32:22 am

online bahis oyna: http://haikuboy.com

Reply
Robert Milbourn link
11/1/2023 10:45:01 pm

It is hoped that with the presence of these international banks, it will improve the country's banking infrastructure. However this move of granting foreign banking licenses to international banks did come under resistance from local banks. Thank you for making this such an awesome post!

Reply
vat return online link
26/1/2023 02:54:42 pm

Thanks for sharing such information! If you’re running a business, you likely have to submit a VAT return every three months. Whilst this can seem like an administrative hassle, you should look at it as a mark of running a successful small business.

Reply



Leave a Reply.

    MYANMAR BUSINESS
    SERVICES

    Myanmar Incorporation

    Corporate Secretary

    Stay Permit Application

    Human Resources Management

    Accounting, Taxation & Audit
    SINGAPORE BUSINESS
    SERVICES

    Singapore Incorporation

    Corporate Secretary

    Accounting

    Taxation

    Trade Support
    QUICK ENQUIRY
      This field cannot be empty, please enter required information.
      This field cannot be empty, please enter required information.
      This field cannot be empty, please enter required information.
    Submit
    SUBSCRIBE
    CONNECT WITH US
    BLOG ARCHIVES

    April 2022
    March 2022
    February 2022
    January 2022
    June 2021
    December 2020
    September 2020
    August 2020
    June 2020
    May 2020
    March 2020
    December 2019
    November 2019
    July 2019
    March 2019
    October 2018
    July 2018
    June 2018
    April 2018
    March 2018
    November 2017
    October 2017
    August 2017
    July 2017
    May 2017
    April 2017
    March 2017
    January 2017
    December 2016
    October 2016
    September 2016
    July 2016
    June 2016
    May 2016
    March 2016
    February 2016

    BLOG CATEGORIES

    All
    Doing Business In Myanmar
    Doing Business In Singapore
    International Business Services

Vertical Divider

Quick Links

About Us
Our Services
​Blog
​
COVID-19 Updates
​ESS HR Portal (for employees only)
Vertical Divider

Business Formation

Singapore Incorporation
Singapore Corporate Secretary
Myanmar Incorporation
Myanmar Corporate Secretary
​
APAC, EU/UK or Middle-East Incorporation
Vertical Divider

Accounting

Singapore Accounting Services
Singapore Taxation Services
Myanmar Accounting Services
Myanmar Taxation Services

Contact Us

Phone - Singapore: (+65) 6336 9912 
Phone - Myanmar: (+959) 7310 5353
Email: info@icononline.net

Awards & Recognition


Picture
Picture
Picture
Picture
Picture
Picture

Inter Group is a proud member of:


Singapore Business Federation (SBF)
Union of Myanmar Federation of Chambers of Commerce & Industry (UMFCCI)

Picture
Picture
Picture
Picture

​

Picture
INTER GROUP PTE LTD. CO. REG. NO.: 201323250M | INTER CONSULTING PTE LTD. CO. REG. NO.: 200501450N | IGM CO., LTD. CO. REG NO.: 101224430
© COPYRIGHT 2005-2021 | ALL RIGHTS RESERVED | ​PRIVACY POLICY | DISCLAIMER