Analysis of Myanmar markets in banking sector

Analysis of Myanmar
markets in banking
sector
HƯNG, NAM, QUỐC VIỆT, QUYỀN


Structure
 Central Bank of Myanmar (CBM)
 State-owned Banks
 Domestic Private Banks, Foreign Bank Branches
 Foreign Bank Representative Offices, Foreign
 Finance Company Representative Offices


Performance


Performance
State-owned Bank
Assets at state-owned lenders slid 14% to MMK 6.5 trillion in the same period.
The state-owned banks: share of total banking assets decrease from 67% in
March 2013 to 46% in March 2016.


Performance


Performance
 Private banking sector
The private banking sector has grown almost 11 times higher over the last six
years with total assets increasing from MMK 1.9 trillion (USD 1.6billion) in March

2010 to MMK 20.9 trillion (USD 17.3 billion or 27% of GDP) in March 2016.
In the past year alone, the assets of the top 10 private banks have increased by
84%, from MMK 10.5 trillion (USD 10.8 billion) in August 2014 to MMK 19.4
trillion (USD 16.1 billion) in March 2016. The total number of branches has also
more than doubled from 678 to 1,149


Performance
Foreign Bank Branches


Main trends
 Mobile Financial Service: With the dramatic increase in mobile
penetration from 7% at the end of FY 11/12 to 90% as at May 2016,
mobile financial services are becoming increasingly important.
 Reform of State-owned Banks


Main reasons
 The population density is high
 Undeveloped banking sectors is developing continuously
 People who have bank accounts is not high
 The credit card services are not popular
 Myanmar remains a predominantly cash-based economy
 Myanmar economic growth rate is high, about 7.2% during the past few years
 New regulations related to banking sectors were passed


Possible entry strategies
Establish Agency offices