Type of organization

        State-owned Commercial Bank rendering commercial banking as well as treasury banking services

 Background History

        Myanma Economic Bank (MEB), which was established on 2 April 1976, was originated from the State Commercial Bank (SCB) founded in 1954.  

        In accordance with the State Commercial Bank Law, the State Commercial Bank (SCB), the first and foremost state-owned commercial bank in Myanmar, was established in 1954 with the aim to raise the entire peoples economic development through a nation-wide banking system. Since its establishment, the SCB expended its service areas as well as its number of branches throughout the country year by year. There were 40 SCB branches throughout the country in 1962.

        Myanmar changed its course to course to socialism in 1962 and all existing banks were nationalized in 1963. To be in line with the Peoples Bank of the Union of Burma Act of 1967, all the nationalized banks were merged together as a monolithic bank called Peoples Bank of the Union of Burma. However, well aware of inefficiency of the monolithic banking system to the economy, the Bank Act of 1975 was promulgated and the Peoples Bank was re-established into four state-owned banks- Union of Burma Bank (UBB), Myanma Economic Bank (MEB), Myanma Foreign Trade Bank (MFTB) and Myanma Agricultural Bank (MAB) with effect from 2 April 1976.

        Though MEB was the successor of the former SCB, it provided only domestic banking services while the MFTB and MAB rendered foreign exchange transactions and seasonal loans for agricultural development, respectively.

        In 1988, Myanmar has pursued market oriented economy and accordingly, the Central Bank of Myanmar (CBM) Law and Financial Institutions of Myanmar (FIM) Law were promulgated in 1990 in order to restructure the financial sector to be in line with the market economy. The FIM Law recognized MEB as an existing state-owned commercial bank.

MEB Today

        As FIM Law grants a wider coverage of banking services to all banks in the country, MEB now operates both domestic and foreign banking services.

        MEB mainly conducts commercial banking services in Myanmar through its network consisted of 305 bank branches, 14 State and Divisional Banking Offices and 6 Head Office Departments.

        MEB Head Office was opened in Naypyitaw in February 2006 and Administration Department and respective sections of head office departments were moved from Yangon to Naypyitaw since May 2006. The grand opening of the new Myanma Economic Bank Building was held on 21 October 2008 and Naypyitaw Bank Branch commenced its banking operations on the same day. All Head Office departments moved to Naypyitaw accordingly.

        MEBs management, together with the support from its 3 policy development entities – the Board of Directors, the Credit Committee and the Executive Committee- oversees MEBs daily operations.

Six Head Office Departments

(1)         Administration Department

(2)         Accounts Department

(3)           Loans and Supervision Department

(4)           Savings and Industrial Finance Department

(5)           Internal Audit Departmaent

(6)           Research, Training and Public Relations Department

Motto

            The Synonym of Safe, Sound and Smooth Services. 

Pick-up Capital

            MEBs pick-up capital is  Kyats 420 millions, fully subscribed by the state.   

Major Functions

MEBs major functions are-   

-          Accepting money on current and time deposit account;

-          Lending money, collecting and dealing in cheques and other instruments;

-          Granting and issuing of letters of credit and traveller’s cheques;

-          Dealing in foreign exchange;

-          Purchasing and selling of bonds or other forms of securities on behalf of customers;

-          Providing safe custody services;

-          Collection and transmitting money securities;

-          Acting as agent of the Central bank of Myanmar in the state fund/ currency management;

-          Acquiring shares in a licensed financial institution or acquiring an equity interest in other institution;

-          Providing guarantee and trustee services and other financial services;

-          Facilitating trade activities also in border areas, sharing borders with China, Thiland,

Bangladesh and India;

-          Disbursing pension payments to retired government employees;

-          Undertaking the operation of the Government Employees Bank.

Policy Boards 

(1)   Board of Directors

       Board of Directors has responsibilities for reviewing the MEBs performance to achieve its objectives and strategy, reviewing the banks internal controls. The Board of Directors are appointed by the Ministry of Finance and Revenue and the managing director of the MEB is the chair man of the BoD. The members of the BoD are:

(a)   U San Thaung  - Chairman ( Managing Director of MEB)

(b)   U Kyaw Kyaw  - member    ( General Manager, MEB )

(c)    U Hla Myint Aung - member ( General Manager, MEB )

(d)   U Than Lwin Oo  - member ( General Manager, MEB )

(e)   U Myint Oo - member ( General Manger, MEB )

(f)     Daw Ni Ni Swe - member ( Director, Budget Department )

(g)   Daw Khin Cho Ohn - member ( Director, UAGO)

(h)   U Thein Zaw - member ( Director, CBM )

(i)     Daw Sint Sint Aung -  secretary ( Deputy General Manager, MEB )

(2)   Executive Committee

The EC decides the extraordinary cases of operations and administrative matters. The managing director of MEB is also chairman of the executive committee. Members of Executive Committee are :

(a)   U San Thaung  - Chairman ( Managing Director of MEB)

(b)   U Kyaw Kyaw  - member    ( General Manager, MEB )

(c)    Hla Myint Aung - member ( General Manager, MEB )

(d)   U Than Lwin Oo  - member ( General Manager, MEB )

(e)   U Myint Oo - member ( General Manger, MEB )

(f)     U Myint Oo - member ( Deputy General Manger, MEB )

(g)   Daw Aye Aye Nyut – secretary ( Assistant General Manager, MEB )

(3)   Credit Committee

Various loan proposals are examined by the Credit Committee. Credit Committee also supervises and controls credit management of the MEB, the members of Credit Committee are:

(a)   U San Thaung  - Chairman ( Managing Director of MEB)

(b)   U Kyaw Kyaw  - member    ( General Manager )

(c)    U Hla Myint Aung - member ( General Manager )

(d)   U Than Lwin Oo  - member ( General Manager )

(e)   U Myint Oo - member ( General Manger )

(f)     U Aung Kyyaw Oo - secretary ( manager )

New Activities

        In May 2007, MEB introduced its first online banking service Myanma Economic Bank e-Transfer Service (e-Transfer Service) in accepting deposits for issuance of bank guarantee to those go abroad and to those submitting Myanmar Passports.

        Another online banking service "Quick Cash" online banking system was initialized in 7 branches in Yangon, Mandalay and Naypyitaw started from  April 2010. Customers can withdraw and deposit their cash at any of these branches by using Smart Cards. The service will be fundamental for the development of ATM network and Debit Card Services in the near future.

        Accordingly, Online Phone Billing System – an online collection of phone bills, was launched on 15 August of this year. People just come to MEB Bank Branches or its Agents to pay their phone bills or just notify MEB with Standing Instruction to pay their phone bills from their bank accounts. Establishment of Online Electricity Bill System is now under negotiation with the Ministry of Electric Power ll and will soon be materialized.

        Furthermore, MBE is now underway to establish its ATM network and Debit Card System to participate in the national level Myanmar Payment Union (MPU) ATM and POS Network.

Programs for human resource development and modernization of banking services (2010-2011)

        MEB has opened serial training courses to enhance human resource development and modernization of banking services for every level of its staff. Training courses are also opened at  State and Divisional Offices too. Courses opened in 2010-2011 fiscal year are: Training course on banking for assistant managers, Training course on banking for supervisory staff and Training course on banking for junior staff.

(1)    Assistant Manager Banking Training Course (1/2010) (from 17-5-10  to 11-6-2010)

(2)    Assistant Manager Banking Training Course (2/2010) (from 11-10-10  to 29-10-2010)

(3)    Supervisory Staff Banking Training Course (2/2010) (from 12-7-2010 to 6-8-2010)

(4)    Basic computer Training Course (2/2010) (from 24-5-2010 to 18-6-2010)

(5)    Basic computer Training Course (3/2010) (from 28-6-2010 to 23-7-2010)

(6)    Basic computer Training Course (4/2010) (from 2-8-2010 to 27-8-2010)

(7)    Basic computer Training Course (5/2010) (from 6-9-2010 to 1-11-2010)

(8)    Basic computer Training Course (6/2010) (from 7-10-2010 to 29-10-2010)

(9)    Basic computer Training Course (7/2010) (from 15-11-2010 to 10-12-201

(10)Junior Staff Banking Training Course (1/2010) (from 18-11-2010 to 10-12-2010)

(11)Junior Staff Banking Training Course (1/2011) (from 10-1-2011 to 4-2-2011)

Organizational Structure of MEB

        MEB performs its daily banking operations through 6 Head Office Departments, 14 State and Divisional Offices, 74 District Branches, 200 Township Branches, 22 Sub Treasury Offices and 10 Saving Agencies.

MYANMA ECONOMIC BANK

BALANCE SHEET AS AT 31 MARCH 2011