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CHAPTER IV Capital and Profit Allocation

14. The State shall be the sole shareholder of the Central Bank. The authorized capital of the Central Bank shall be five hundred million kyats, of which two hundred million kyats shall be fully paid up by the State. The balance of the authorized capital may be subscribed as may be necessary by the State.

15. The authorized and paid-up capitals of the Central Bank may be increased with the approval of the Government. No reduction of these capitals shall be made.

16. When the value of the Central Bank’s assets falls below the sum of the value of its liabilities and its paid-up capital, the Minister of the Ministry of Planning and Finance shall transfer government securities to the Central Bank in the amount necessary to remedy this situation, as proposed by the Central Bank and approved by the Government.

17. The net profits of the Central Bank for each year shall be calculated after deducting the operating expenditure for the year and after making provision for bad and doubtful debts, depreciation of assets and funds for welfare and retirement of the staff. The Central Bank may make provision for such other purposes which it considers necessary, with the approval of the Government.

18. The Central Bank shall establish a General Reserve with an initial contribution of fifty million kyats from the State. At the end of each year, an amount equal to twenty five per cent of the net profits shall be allocated in multiples of one million kyats to the General Reserve until it amounts to 100 per cent of the paid-up capital of the Central Bank. By authorization of the Government, the amount to be transferred to the General Reserve may be increased to exceed the prescribed annual percentage or the total amount of the General Reserve may be increased beyond the paid-up capital of the Central Bank.

19. After transfers to the General Reserve have been made under section 18, the remainder of the net profits shall be used to redeem the government securities which have been issued under section 16 held by the Central Bank.

20. The balance of the net profits remaining after all deductions under section 18 and section 19 shall be paid in multiples of one million kyats to the Government as soon as practicable after the end of year.

21. No deduction permitted under section 18 and section 19 shall be made nor shall any payment under section 20 be made if, in the opinion of the Central Bank, the assets of the Central Bank after the deduction of payment will be less than the sum of its liabilities and paid-up capital.

22. The Central Bank shall be exempt from taxes on income, stamp duties or like dues and from assessment of tax related to banking operations.

23. (a) The accounts of the Central Bank shall be audited by the Auditor General;
(b) The Central Bank shall prepare financial statements at the end of each year. The Central Bank shall submit its annual report to the Government through the Ministry together with its balance sheet and profit and loss statement certified by the Auditor General within 6 months after the end of the year;
(c) After submitting the annual report under sub-section (b), the Central Bank shall publish it in the manner prescribed by the Ministry, for public information.

Date : 20th Oct 2017

 

1362.0 / USD

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Source : forex.cbm.gov.mm

Interest Rate(%)
Central Bank Rate 10% pa
Minimum Bank Deposit Rate 8%pa
Maximum Bank Lending Rate 13%pa
Economic Indicators (%)
GDP Growth 5.90 %
Annual Rate of Inflation 4.70 %
Year on Year Inflation 2.40 %

     Source : Ministry of Planning and Finance