The Republic of the Union of Myanmar

Central Bank of Myanmar

Directive 12/2022

Date: October 7, 2022

Sub: Amendment in calculation of Minimum Reserve Requirement ratio (in kyat) to be kept by
banks

Ref: (i) CBM’s Directive No. 19/2021 dated 25 November 2021

(ii) CBM’s Directive No. 3/2022 dated 25 March 2022

1. The Central Bank of Myanmar (“CBM”) has set a 3 percent Minimum Reserve Requirement
Ratio for banks to keep in kyat and issued its instruction No. 19/2021 (referred document No.
1) to establish a new calculation model permitting banks to include Cash at Bank in addition
to their CAB, i.e., their cash deposited at CBM.

2. The CBM revised its calculation model as stated below with the aim of improving the banks'
cash management maintaining the 3 percent Minimum Reserve Requirement Ratio that banks
are required to keep in Myanmar Kyat.

(a) To keep 2.5 per cent CAB in the 3 percent Minimum Reserve Requirement Ratio

(b) To keep 0.5 per cent Cash at Bank.

3. On the last day of the maintenance period, the banks must meet the set percentage of the
Average CAB or Average Cash. Any bank which failed to meet the set percentage will be
considered as a bank that does not comply with the rule for Minimum Reserve Requirement
and punished under CBM’s Directives No. (12/2016).

4. The amendment in Minimum Reserve Requirement will be applied from the maintenance
period (12 October 2022 to 8 November 2022) until the period (1 March 2023 to 28 March
2023).

5. Directive No. 19/2021 and Directive No. 3/3022 are repealed by this Directive.

For and on behalf of the Governor,

Dr Lin Aung, Deputy Governor

Attention

State-owned banks
Private banks
Subsidiary banks
Cc:

Ministry of Planning and Finance

Myanmar Banking Association
Office of the Governor of Central Bank of Myanmar
Deputy Governors, Central Bank of Myanmar
Directors General, Central Bank of Myanmar
Deputy Directors General, Central Bank of Myanmar
Office copy/Circulation