MBF 1 Batch (online)

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Bank Management
PRESENTED BY GROUP 1
22.4.2023
 Group – 1
Presentation Member
1. MBF- 1 LAY YU AUNG EMAIL- LAYYUAUNG14793@GMAIL.COM
2. MBF- 3 SAI NYUNT WIN BO EMAIL- WINMYATGONESAUNG@GMAIL.COM
3. MBF- 4 LWIN LWIN CHO EMAIL- SWEETIE178@GMAIL.COM
4. MBF- 5 MYO MIN HTAY EMAIL- MYOMINHTAY@GMAIL.COM
5. MBF-16 MOE PA PA MIN EMAIL- MOEPAPAMIN1@GMAIL.COM
6. MBF-22 KYI MAR NWE EMAIL- EIKYAWTKYAWTHTUN@GMAIL.COM
7. MBF-28 WAR WAR EI SAN EMAIL- JUVENILE.ORG@GMAIL.COM
8. MBF-29 MIN SANDAR EMAIL- SANDAR148072@GMAIL.COM
 Objective

1. CURRENCY EXCHANGE LAW & REGULATION/ INSTRUCTUION

2. INSTRUCTION AND DIRECTIVIES FOR OPENING BRANCHES

3. COST AND BENEFITS OF OPENING BANK BRANCHES

1. CURRENCY EXCHANGE LAW & REGULATION/
INSTRUCTUION
1. 2022.4.3 NOTIFICATION NO. (12/2022)
2. 2022.4.3 INSTRUCTION NO. (4/2022)
3. 2022.4.5 INSTRUCTION NO. (5/2022)
4. 2022.4.5 INSTRUCTION NO. (6/2022)
5. 2022.4.3 INSTRUCTION NO. (4/2022)
6. 2022.4.26 INSTRUCTION NO. (7/2022)
7. 2022.8.5 NOTIFICATION NO. (36/2022)
8. 2022.8.30 INSTRUCTION NO. (39/2022)
9. 2022.4.4 INSTRUCTION NO. (18/2021-9.11.2021) ( DELETING)
ACCORDING TO FE-1/17
 Throughout 2022, the Central Bank of Myanmar (CBM) has implemented a series of
rules surrounding the compulsory conversion of foreign currency balances in the country.
This began on April 3, when the CBM issued a notification directing foreign currency holders
in Myanmar to convert their foreign earnings into Myanmar kyat (MMK), within one day, at
the official exchange rate. Since then, the CBM has issued further clarifications and
instructions for banks authorized to handle foreign currency, responded to some concerns
from foreign investors by exempting certain foreign investment projects from the conversion
requirement, and relaxed the currency conversion requirements for trade at the Chinese and
Thai borders. The process has not been without some trial-and-error as well, with the CBM
walking back some exemptions after they were enacted.
Foreign investors and business owners, both in the country and abroad, have raised
concerns about this centralized control of foreign currency flow and the depletion of foreign
currency in Myanmar's business community. To help readers understand the sometimes-
surprising moves by the CBM over the past months, this article will summarize the key
developments in the CBM's efforts relating to foreign currency conversion.
 Establishment of Compulsory Exchange Requirement
On April 3, 2022, the CBM issued Notification No. 12/2022 and Directive No. 4/2022
requiring nearly all individuals, companies, and other organizations in Myanmar to convert
foreign-currency income received from abroad to MMK within one working day of receipt.
These requirements took immediate effect for all transfers and applied retroactively to foreign
currency balances already in the country. All authorized dealer (AD) banks (i.e., those
licensed to exchange foreign currency) were instructed to convert foreign currency held in the
foreign currency accounts of "internal residents"-which included locally registered
companies, organizations, and offices; Myanmar branches of foreign companies; and
individuals residing or established in Myanmar for at least 183 days (excluding foreign
diplomatic staff and foreign civil servants).
Additionally, foreign-currency transfers out of Myanmar must now be performed
through AD banks with the permission of the government's Foreign Exchange Supervisory
Committee (FESC).
Under these rules, the conversions are to be made at the official exchange rates set by the
CBM. When the notification and directive were issued, the official rate for US dollars was
USD 1 to MMK 1,850. However, on August 5, 2022, the CBM increased this official exchange
rate to USD 1 to MMK 2,100.
 Early Clarifications
These announcements caught many by surprise, so the CBM clarified the foreign
currency conversion requirements by issuing further details on April 5, 2022. Directive No.
5/2022 exempted the union government and ministries from the requirement, and
Directive No. 6/2022 spelled out instructions for AD banks. The directive makes AD banks
responsible for handling the conversion process by requiring them to:
1. transfer the amount in question to the concerned company's account;
2. convert the amount to MMK at the CBM exchange rate; and
3. deposit it in an MMK-denominated account.
The conversion process must be carried out within one working day of receiving
export earnings, other earnings (including from services), or foreign currency investments
(excluding foreign currency allowed by the FESC). AD banks must also perform additional
checks in the conversion process for loans for investment and unilateral transactions.
 Planning Department

The planning department draws details plans for expansion of banking network by opening news

branches within the financial year envisaged sanctioned strength of employees , expenses involved,

potentials profit and making arrangements for increasing of Authorized Capital and subscribing of

Paid-up Capital there by obtaining Centrals Bank’s permission for opening of the branches.
2. Instruction and Directives for Opening Branches

(I) 2018.2.28 NOTIFICATION NO. (122/2018)

(II) 2018.3.8 INSTRUCTION NO. (3/2018)
(III) 2018.11.8 INSTRUCTION NO. (6/2018)
(IV) 2018.12.3 NOTIFICATION NO. (8/2018)
 Cost and Benefit
Cost of land, building construction costs; cost of fitness/security check; vault There are
inspection and miscellaneous costs.

As a benefit, getting employment opportunities for young people in the area where the
branch is opened; Improving banking operations in the region; Being able to issue the
necessary loans for the businessmen will bring benefits such as strengthening the business
operations and earning interest on the loans, so that the bank can find profits.
 Thank You.
Teacher & all classmate.