IFC and Myanmar Citizens Bank Sign Agreement to Transform Banking in Myanmar

Print
 
Aug 2019
Myanmar, August, 15 2019 - By increasing MCB’s ability to better serve SMEs, IFC will contribute to the increasing access to finance, accelerating much needed growth of credit to Myanmar’s expanding private sector, particularly for smaller businesses.

The International Finance Corporation (IFC), a member of the World Bank Group, signed an agreement with the Myanmar Citizens Bank (MCB) that will increase access to finance for businesses, smaller enterprises and individuals.

Under the agreement, IFC will provide advice to MCB to undertake a project to transform its business operations, creating a secure foundation that will help support future prosperity in Myanmar.

The project will be delivered over two years and will focus on optimizing products and channels; improving branch and sales networks; optimizing credit and risk management strategies as well as streamlining organizational management.

“Successfully implementing this transformation project will significantly strengthen our SME and retail banking segments and will help thousands of businesses in Myanmar gain access to better banking,” said U Toe Aung Myint, Chairman of MCB.

According to Findex in 2017 it was estimated that only around 26 percent of adults in Myanmar have an account at a financial institution. For businesses, just 7 percent of small and medium enterprises have a line of credit or loan, and 56 percent of enterprises in Myanmar do not have a savings or checking account (UNCDF 2018).

“Emerging from the long-term banking restrictions, smaller domestic banks in Myanmar operate in a challenging environment. The nation’s banking sector is now one of the least developed in the region,” said Vikram Kumar, IFC Country Manager for Myanmar. “Complementing the government’s banking reforms over the past few years, IFC and MCB are building to a more stable and robust banking environment, which will increase investor confidence in Myanmar.”

By increasing MCB’s ability to better serve SMEs, IFC will contribute to the increasing access to finance, accelerating much needed growth of credit to Myanmar’s expanding private sector, particularly for smaller businesses.

Aligning with the Myanmar Government’s Sustainable Development Plan to 2030 and with IFC’s goals to end extreme poverty and boost shared prosperity, IFC has already invested in two other projects to boost Myanmar’s banking sector. Providing access to banking services which were previously unavailable is one of the first steps to alleviating poverty.



Source : WebWire
 

Research Analysis Tools

The fund indexes, institution benchmarks and other market information displayed here are all Symbiotics designed analysis tools, created in-house by our analysts and experts. Symbiotics has one of the oldest track records in microfinance investment analysis dating back to the late 1990s; its indexes and benchmarks have been regularly used as markers by investors, asset managers, financial institutions and practitioners. These, as well as several other research products, are available through the Research Account. Click on the link below to find out more.

Learn More