Currency - Myanmar (Burma) - 1 Kyat- Year 1953

Item Code:  150/mm-3

Year	1953
Obverse	Peacock on right
Reverse	Burmese Junks; mountains.
Watermark	Peacock
Size	108 x 66 mm
Material	Paper

Central Bank of Myanmar

Headquarters

The Union Bank of Burma was established on 3rd April 1948 by the Act of Union Bank of Burma 1947 and took over the functions of the Yangon branches of the Reserve Bank of India. It did not have the full power of a central bank. In 1st July 1952, the Union Bank of Burma Act was enacted. In accordance with this Act Burma Currency Board was abolished and the Union Bank of Burma Act, 1952, conferred on the Union Bank of Burma all the usual functions of a central bank. The Union Bank of Burma was opened at the corner of Merchant Road and Sule Pagoda Road and had a sole right of currency issue. It was transferred from the Burma Currency Board to the newly created Currency Department of the Union Bank of Burma with effect from 1st July, 1952.

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 reformed the administrative system 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, Myanma Economic Bank, Myanma Foreign Trade Bank and Myanma Agriculture Bank had emerged. Accordance with the 1975 Bank Law, initial paid-up capital of the Union Bank of Burma was 200 million Kyats that was fully contributed by the State.

After 1988, Myanma 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 with the new government, was formed on March30, 2011, Central Bank of Myanmar have to become independently to laid down the policies. Central Bank of Myanmar needs to enact monetary policy independently to control the price stability in domestic market and to preserve the internal and external value of the Myanmar currency the kyat. According to the new law of Central Bank (Draft), Central Bank of Myanmar will set up with paid up capital of 300 Billion kyat and of which 100 billion kyat will fully paid up by state.

6 Largest Banks in Myanmar

The history of modern banking in Myanmar (formerly Burma) can be traced to the days of the British Colonization. Several British Banks operated in the province with Imperial Bank of India playing the role of a Central Bank till 1935.  From then on till independence, Reserve Bank of India acted as the Central Bank in Myanmar. Post-Independence, Union Bank of Burma was established and acted as the Central Bank till the 1962 Burmese coup d'état. After the fall of the democratically elected government, in February of 1963, all private banks, were nationalized under a single entity People’s Bank of the Union of Burma and its name was subsequently changed into Union of Burma Bank in 1972. 

The 1990s saw the evolution of the modern banking system in Myanmar and marked the beginning of an era of liberalization. The Central Bank of Myanmar was established under the Central Bank of Myanmar Law in 1990. It has been empowered to exercise supervision and regulatory authority over financial institutions for both state and privately run banks. The Central Bank of Myanmar designs and formulates the Monetary Policy of the country and also controls the flow of Foreign Exchange.

State Run Banks

·   Myanma Economic Bank – Formerly known as the Burma Economic Bank, it is one of the oldest banks operating in the country.  It was established in the 1976 as a subsidiary of the State Commercial Bank. It is one of the largest banks in the country having branches in all the major cities and towns. Its network consists of of 300 bank branches, 14 State and Divisional Banking Offices and 6 Head Office Departments.

·   Myanma Investment and Commercial Bank –  The bank was established in 1990 and its operations are primarily focussed on business and domestic currency-denominated loans that are given out for commercial, investment, and development activities. Its branches are mainly located in Yangon and Mandalay and offers international that include Letter of Credit, Bill Collection, Payments and Settlements for exporters and the importers. 

Semi Government Banks

·   Co-Operative Bank Limited – Popularly known as the CB Bank it was established in the year 1992 and more than 90 branches in different parts of the country. With its headquarters in the Latha it has one of the largest ATM networks in the country is credited for having adopted modern technology in its banking operations very early. 

·   Innwa Bank Limited- This bank was founded in the year 1997 by the Myanmar Economic Corporation and is a major conglomerate owned by serving and retired military officers of the Tatmadaw, affiliated with the Myanmar Ministry of Defence. Most of the banks management is controlled by the military. Its branches are mainly in Yangon and other major cities in the country. 

 Private Banks 

·   Kanbawza Bank Limited – It is the largest private sector bank in Myanmar that was established in 1994. The bank is a part of the Myanmar Billion Group which has large stakes in the mining industry. The bank is headquartered the city of Yangon and has more than 200 branches across and over 80 currency exchange counter. It also own 80% share in Myanmar Airways International. 

·   Yoma Bank Limited – One of the largest commercial banks in the country it was established in 1993 by the First Myanmar Investment Company. The bank has regularly been expanding its operations and has its branches in 24 cities. It is credited to been one of the pioneers in brining modern technology banking operations in the country recognized for its efficient remittances services. 

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