Financial Institution

Co-Operative Bank (CB Bank)

1. Financial Institution
Financial Institutions define as the corporations which provide financial services as
financial intermediaries. There are three major types of financial institutions. These are (i)
Depository Institutions like as commercial banks, credit unions and trust companies, (ii)
Contractual Institutions like as insurance companies, pension funds and (iii) Investment
Institutions like as Stock Exchange (New York Stock Exchange, Tokyo Stock Exchange, Hong
Kong Stock Exchange and Yangon Stock Exchange), Underwriters, and Brokerage firms.
Financial institutions have two kinds of classification. These are banking institutions and non-
banking institutions. There are famous financial institution commercial bank, saving and loan
association Credit Union, Life Insurance, Mutual Fund and Pension Fund in USA and Europe
Countries. There is famous financial institution in Asian countries like Credit Union (South
Korea, Nepal, Indonesia, Philippine).
Banking institutions use banking instruments like cheque, pay order and provide banking
and other financial services to their customers and societies (accept deposits, provide loans).
Financial Institutions in Myanmar are four State own banks, MEB, MFTB, MICB and MADB,
twenty four Private Banks, KBZ, AGD, AYA, CB, Sibin Bank, etc., and thirteen Foreign bank
branches, Sumitomo Bank Japan, Shinhan Bank Korea, EXIM Bank of India.
Non-banking institutions are the institute that do not have a full banking license and do not
allow taking deposit from public. In Myanmar, 25 companies as non-bank institutions, such as
Oriental Leasing, Myat Nan Yone Finance and National Finance, etc., are registered by Central
Bank of Myanmar. There are 3 companies of mobile financial service providers, such as Ok$ and
Wave Money.
Other credit unions like MFIs, MADB Loans, Mya Sein Yaung Funds, Cooperative
Microfinance Loans are important financial institution in rural areas.
Financial institutions face many challenges in globally. In 1997 Asian Financial Crisis in
Thailand there are about forty seven commercial banks liquidation and also in 2008 global
economic crisis, some banks and credit union are liquidated. Therefore Myanmar financial
institutions will need to prepare carefully for sustainable development.

2. Myanmar Banking History

Indian money lenders called Chettiars - members of an ethnic group specializing in
finance- arrived in to the part of Burma after the first Anglo-Burmese War which brought part of
Burma under British Empire. In the coming century, Chettiars would spread as far as British India
did, introducing many lending and bookkeeping innovations and employing the hundi system of
informal remittance.
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After the Second Anglo-Burmese War, in 1852, lower Burma fell to British. King Mindon
founded Royal Mint in Mandalay. In the first formal currency ever issued in the country, gold and
silver coins are struck for the kyat using dies cast in Paris and machinery imported from
Birmingham, England. The reverse of the coins bears the royal peacock seal, leading the British.

Indian Presidency Bank of Bengal opened Yangon branch in 1861. Third Anglo- Burmese
War brought all of Burma under British Empire in the end of 1885 and rupee fully replaced kyat.
Twelve years later, in 1897, Government of India altered Burma rupee design to incorporate
Burmese lettering. The first local bank was opened in Sittwe in 1900. In part to stem the influence
of Chettiars, a formal system co-operateive credit was introduced in 1905 and grew to 4000
societies by 1929, though ultimately failed due to problems of implementation.

In April 1937, the Government of Burma Act separated Burma from India and established
and independent parliamentary government. Currency and banking issues remain solely controlled
by British-appointed Governor. The Reserve Bank of India (RBI) is assigned to serve as a central
bank for two countries simultaneously.
The orders of bank notes “of distinctive design” was issued by the RBI (without Burmese
involvement), the 5 rupee note was released in May 1938 and the 10 rupee note in June the same
year, with English, Burmese and Shan writing on them.
Prior to Japanese invasion 24 commercial “ Exchange banks” were operated in Burma,
most headquartered elsewhere, including Lloyds, HSBC, Thomas Cook and Son, Bank of China,
National City Bank of New York (Now Citibank). In 1942 March 7, Japan took Rangoon and
Japanese military rupee are issued, only in paper form. After World War II ended 1945, Japan was
driven out of Burma by British and Allies, Japanese rupee become worthless paper. Foreign banks
re-entered and re-opened in Burma in 1946. Burma Currency Board was established in 1947 to
mediate exchange of local and foreign currencies, through headquarters in London. On January 4,
1948, Burma got independence and British-Imposed Indian rupee was replaced by Burma’s own
currency.

Union Bank of Burma Act disbanded Burma Currency Board in July 1, 1952 and
established the Union Bank of Burma as central bank. The kyat (=100 pya) replaced the rupee at
par, with Chinthe (Lion) designs on back.
State Agricultural Bank, in June 1953, State Commercial Bank in 1st June 1954 and
Industrial Development Bank in October 1961 are formed respectively. In 2nd March 1962 the
Revolutionary Council Government announced the banks’ nationalization, 14 foreign and 10 local
banks- from the central Bank of India through the Upper Burma Bank- are remained people’s
Bank No.1 through People’s Bank No.24.

First demonetization started on 7th May 1964, all holders of K50 and K100 notes are
required to hand them into the collection centers. In 1970, People’s Banks No 1-24 and pre –
existing state-owned banks are merged into one entity, the People’s Bank of the Union of Burma,
following a Chinese model, to encourage socialism. Various pre-socialist banking laws are
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repealed. In 1972 this single bank entity is renamed the Union of Burma Bank. Currency
production is brought in-country for first time, at a printing plant established in Wazi in Magwe
Region.
Single bank was split into a central bank, the Union Burma Bank, and three others,
namely, MEB, MFTB and MAB, with specific areas of responsibility, governed jointly by the
UBB and the Ministry of Finance and Planning.

K100, K50 and K20 are no longer legal tender after the second demonetization on
November 3 1985. New notes, K25, K35 and K75, were introduced in their place. After less than
two years of issued, on September 5, 1987, the third demonetization taken out with K25, K35 and
K75 and new bills K45 and K90 entered into the market on September same year.

In 1990, US imposed sanctions and fourth state bank, Myanmar Investment and
Commercial Bank (MICB), was set up to stimulate growth of industry and production. Central
Bank of Myanmar law was passed to establish modern monetary policy.
Private bank licenses are issued for the first time in 1992 and in 1993, primary government
Treasury bond market established, but the secondary market for on-trading bonds are still lacking.
Foreign exchange certificates (FECs) established in 1, 5 and 10 denominations to limit circulation
of US currency. Asia Wealth Bank began operation. Other banks, Myawaddy, Cooperative and
others, operate with government backing. First ATM system was introduced at Mayflower Bank.

Myanmar Stock Exchange formed in 1996 and also Asia Wealth Bank issues country’s
first credit cards. US sanctions still expanded and EU sanction implemented. Asia Wealth Bank
offered first online banking in 2001. Myanmar Institute of Banking (MIB) founded as a quasi-
department within MBA, providing banking training mainly from entry to middle-management
levels. Central Bank moved to Nay Pyi Taw on June 3, 2006 and in 2009 according to ASEAN
Comprehensive Agreement, Myanmar agreed to open to regional foreign banks by 2015.

Private Banks are allowed to open foreign exchange counters on October 2011. In 2012,
US, UK, EU sanction eased and World Bank got involved; Visa, MasterCard, Western Union
arrived. Abolishment of FECs was announced on March 2013. On May Central Bank of Myanmar
(CBM) signed MoU with Tokyo Stock Exchange to establish stock exchange in Myanmar by
2015. On July 12, Central Bank of Myanmar law revised and separated CBM from Ministry of
Finance, granting it autonomous power to implement monetary and exchange rate policies. In
2015, Yangon Stock Exchange was launched and ASEAN free Trade Agreement (AFTA) set to
link region’s economies.
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3. Co-Operative Bank’s Journey

Co-Operative Bank Ltd (CB Bank) was incorporated in 21st August 1992 through the
rules of Company Act and Myanmar Financial Institutions laws. CB Bank Ltd is operating as a
100% privately owned Bank under the license of Central Bank of Myanmar. In 2004, CB Bank
changed its legal business structure into Public Company under the Myanmar Companies Act.
The logo of CB Bank takes the shape of a rainbow. It is the combination of seven colours
which comes out of nature and represents the unity of different colours which denotes the
indiscrimination of race, religion, colour or creed.

Motto of CB Bank is “Let's Win-Win Together! ”. It means that good relationships are the
result of honesty, integrity, respect, commitment, trust, confidence, and openness. In any healthy
relationship, partners create an environment that encourages continuous improvement, risk taking,
a long-term perspective, and of course are win-win relationships. Clearly, the stronger these
attributes are, the more enduring the partnerships become.
Vision of CB Bank is to become one of the top-notch leading banks in Myanmar with
solid foundation, superb performance, excellent image and reputation.
Its Mission is to serve the customers, staff, Shareholders and the environment with the
greatest values of comfort and complete satisfaction.
Today there are totally 214 branches all over the country. Over 5000 staffs are working in
these branches including three Head of Offices, located in Yangon, Mandalay and Nay Pyi Taw.

4. CB Bank’s Products and Services

The main functions of CB Bank are receiving deposits from public and giving loans to
public and business organizations.

4.1 Types of Deposits

There are many types of deposits such as demand deposit, saving deposit, fixed deposit,
minor deposit, call deposit, wedding deposit, etc., Banking activities must be carried out in
accordance with the rules and regulations prescribed for different types of deposits.

4.1.1 Demand Deposit (current deposit)

Current Deposit is a non- interest bearing account and convenient and reliable for
payments. Amount can be both deposited and withdrawn at any time without any prior notice.
Individuals, joint account more than one and various associations can open the current account.
Initial deposit of MMK 1,000 is required. Bank Statements will be sent at the end of each month.

4.1.2 Saving Deposit

The savings account is the passbook savings account, which does not permit check
writing. Safe keeping of funds and earn interest on balances. Interest is compounded quarterly.
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Interest payment is calculated on the minimum balance in a monthly statement. Initial deposit is
MMK 1,000. Interest Rate per annum is 8.25%. Deposit to Savings Deposit Account may be
made by cash deposit over the counter and Check payment, payment order, fund transfer,
collection and clearing system.

4.1.3 Fixed Deposit

Certificates of fixed deposits are classified as "One month deposit", “Three month
deposit”, “Six month deposit”, “Nine month deposit” and “One year and above deposit”. The
current interest rates are: 8.5% for 1 month, 9.25% for 3 months, 9.50% for 6 months, 9.75% for 9
months deposit and 10% for one year deposit respectively. Interest will be calculated by daily.
The CB bank will make no charges at all for keeping fixed deposit accounts.

4.1.4 Minor Deposit

Minor’s deposit account may be opened as a savings account and as a fixed deposit
account. The D.O.B (date of birth) mentioned in the minor’s birth register and the D.O.M (date of
maturity) will be mentioned in the bank book. On the day minor reaches adulthood (the day
he/she turns 18) the account will be changed to and open as the adult account. The natural parents
(the blood related parents) may act as the guardian in matters of paying-in the withdrawing cash
from a minor’s part-time deposit account. If a minor has not his or her own parents, a person who
has been appointed as a guardian with letter of guardianship under the Guardian and Wards Act,
may act as a guardian of a minor. A minor, who has opened a minor’s bank account, has the right
to pay-in or withdraw cash himself /herself.

4.1.5 Call Deposit

CB Bank’s Call Deposit allows customers can get their interest on their account’s day-end
balance. Customer will get the quarterly interest. The interest rate is 2% per annum for any
amount. They can deposit unlimited numbers of amounts of cash into their account and can
withdraw unlimited amounts of cash. Bank Charges will not be collected from account-holders.

4.1.6 Wedding Deposit

Newly Weds, both man and wife, or either man or wife must come in person to the bank.
Any supporting evidence, such as Weeding Invitation or Marriage Certificate, must be brought to
the bank. With at least one million kyats at a time with no limit on the amount and frequency,
may be repeatedly deposited in the newly Weds deposit account. Deposit must be made at least
for a period of one year. Certificate of newly Weds deposit is not transferable. If kyats one million
and above are deposited with the bank, the bank will not only pay interest at the rate of ten a year
but also will give minimum amount of cash MMK 20,000 to maximum MMK 100,000 as a
present. Minimum Initial Deposit is MMK 1,000,000 and above Available Tenors is minimum 1
year. Interest rate is 10% per year. After maturity, the interest will not be calculated for the
deposit. Interest rate can be changed from time to time.
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4.2 Loans and Advance

In finance, a loan is the lending of money by one or more individuals, organizations, or
other entities to other individuals, organizations etc. The recipient (i.e. the borrower) incurs a
debt, and is usually liable to pay interest on that debt until it is repaid, and also to repay the
principal amount borrowed. A loan is money, property or other material goods that is given to
another party in exchange for future repayment of the loan value amount along with interest or
other finance charges. A loan may be for a specific, one-time amount or can be available as an
open-ended line of credit up to a specified limit or ceiling amount.

Banks lend for profitable in period limitation to assist in the development and growth of
businesses and to increase working capital in the country. Now, CB Bank makes five types of
loans namely, Loans and overdraft, Home Loan, Education Loan, Hire Purchase and SME Loans.

4.2.1 Loans and Overdrafts

It is compulsory to have a current account in CB Bank. It shall be a kind of loan permitted
by bank to be borrowed more than the amount in the current account of customer. Permitted
amount can be withdrawn till the limit required and it can be deposited back into the loan account
if it does not need if it is surplus so that it shall be relief in interest.

Interest is calculated for each day upon the loan issued. Interest is calculated only on the
expiration date of quarterly month within financial year in calendar. Loan period is for one year
(short term) from the date of issue. It is not allowed to withdraw cash more than the amount
permitted, or after ending date of loan period. Application for loan extension can be done before
the end of loan period. Capital and interest of loan shall be paid back in full if there is no any
extension.

4.2.2 Home Loan

With CB Bank home loan program, customer can now afford to own desired apartment,
condominium or landed house that suits our lifestyle. Minimum Down Payment is 30%, Interest
Rate is13% per annum, Service charges is Maximum 2% on Loan Amount and Loan Tenor is
Maximum 15 Years. Customer need the following 6 easy steps to Dream Home:
(1) Choice of dream home with authorized developers from CB Bank,

(2) Apply for home loan with required documents in CB Bank Head Office,
(3) After review, CB Bank will inform the approved loan amount and tenor,

(4) Sign installment contract (or) Letter of offer from CB Bank, and
(5) Make down payment and settle service free and (6) - Collect key from CB Bank.

4.2.3 Education Loan

Education Loan aims to provide the much needed financial support to deserving students
for pursuing higher education. There are two types of education loan that down payment for local
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education loan is 10% and down payment for overseas is 20%. Interest Fee is 9% p. a and service
fee is1% p.a.(on loan amount). It needs guarantor 1 or 2 persons.

4.2.4 Hire Purchase

Hire purchase plan can be regarded as long-term investment which supports financial plan
just by monthly repayment to the bank. Hire Purchase financing is the new source of fund for
business which can provide financing up to 70% but subject to term and condition. Hire Purchase
is less complicated compare to other loans because usually no additional collaterals are required
during hire purchase loan application. Hire Purchase plan protect the inflation risk since the
payment period is specified and the interest rate for monthly payment is fixed at the beginning of
the contract period. Repayment and interest are calculated by amortization method.

4.3 SME Loans

Small and medium- sized enterprises (SMEs) are non-subsidiary, independent firms which
have to comply with the Myanmar SME Law. CB Bank offers different types of SME loans for
Myanmar SMEs to achieve sustainable growth and development for Myanmar SMEs.
Finance customer’s business needs with 4 SME Loans, namely, SME CGI Loan, SME
JICA TSL, SME CB- KfW Loan and SME Term Loan.

4.3.1 SME Credit Guarantee Insurance Loan

In SME CGI Loan scheme, customers can apply for a SME CGI loan without collateral
and the maximum loan amount they can apply is 20 Million MMK. They can apply for more than
20 Million MMK according to their business needs by providing collateral. However, the loan
amount will be approved by CB Bank based on the business plan and the appraised value of the
collateral. SME- CGI Loan chooses because collateral- free loan of up to maximum loan amount
of 20 Million MMK, repayment period of 1 year and the interest rate is 13% per annum.

4.3.2 SME JICA TSL Loan

Co-operation with Japan International Cooperation Agency (JICA), the JICA Two Step
Loan (TSL) is another loan scheme available for the local SMEs here in Myanmar. To apply for
TSL, customer will need immovable property such as house and land as collateral. The loan tenor
is from 1 to 5 years. The maximum loan amount is 500 Million MMK. The main criteria of JICA
loan is to invest in Fixed Asset for at least 80% of total loan amount and 20% for Working Capital
use. JICA TSL Loan chooses because suitable for businesses that are at least 2 years old who are
aiming to invest in Capital Investment such as building factory (or) warehouse, upgrading
machines, buying new machines, expanding the restaurant, etc. Repayment Period of up to 5 years
and borrow up to 500 Million MMK. Interest rate is 8.5% per annum.

4.3.3 SME CB- KFW Loan

KfW SME Fixed Assets Loan is supported by KFW Development Bank with an aim to
provide sustainable and need-based financing to local SMEs aiming to support with their
investment needs. The purpose of the loan is to provide financing for investment in fixed assets
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such as purchasing new machineries, factory construction, factory renovation, restaurant

expansion and more. The invested fixed assets can also be pledged as collateral. Loan applicant
required to make a commitment of 10% to 20% of the total investment value.
KFW loan choose because this loan is suitable for start-ups businesses as young as 6
months and easy to manage the cash flow with amortization repayment. Moreover, borrow up to
100 Million MMK and flexible repayment period of up to 3 years. Flexible interest rate from
8.5% to 13% per annum based on the nature of our business and collateral can be purchase of
fixed assets.

5. CB Bank’s e-Banking
e-Banking is personal banking service on the Internet. It is available anywhere, anytime.
There are two main types of iBanking, namely, Personal Internet Banking and Business Internet
Banking.

5.1 iBanking
Personal Internet Banking: People in Myanmar to be complied in accordance with the
developing and changing the sectors of economics, politics, social and technique in the country.
So CB Bank always trying to serve the best and the most secure services to all citizens for
banking Transactions. Now CB Bank introduced Internet Banking Services, named iBanking to
all people in our country to manage Banking with convenience & secure ways. CB Bank’s
iBanking is very simple, instant, safe and fast. It can be used on all electronic devices, PC, mobile,
laptop, tablet, smart TV etc. The Technology has higher security and also protects their accounts
information and transaction with 2-factor authentication Token (OTP), SSL Certificate from
VeriSign / Norton Secured. So people can manage their finance, their account where ever and
whenever with the best security system by using CB Bank iBanking.

If the customers cannot go to the bank as they do not have time or when they are away
from bank for travelling, they can make daily transactions and fund transfer facilitates in the real
time by using the CB Bank Internet Banking (iBanking). Daily cash transactions can be
withdrawn safely, easily and quickly at not only nearer CB Banks.
Business Internet Banking: CB Bank’s Business Internet Banking is the convenient way
to do Banking from the comfort of anywhere, any time. Avoid the queue or delays and try the
simple and secure Business Internet Banking facility for an unmatched online Banking
experience. CB Bank’s Business Internet Banking makes customer’s banking transactions fast,
simple and reliable. People can also customize their banking transactions to suit their business
needs and receive email/SMS alerts for account activities.

5.2 EASi Mobile

CB Bank launched the Agent Banking Service for contributing the development of rural
areas. The Agent Banking Service is a bank service which makes the customers time save and
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easy for the small businessmen. In this service, the latest technology of Temenos Banking
Software (T-24) is applied by Switzerland based Company. That technology has the higher
security system and gives to protect the accounts which cannot easily be used. The Agent Banking
service can be used daily process without failure. The service can be managed not only on cash
flow but also easily can be managed to transfer the funds speedily and securely. The Agent
Banking service is very simple and easy to use it. It’s safe and secure.

If the customers cannot go to the bank as they do not have time or when they are away
from bank for travelling, they can make daily transactions and fund transfer facilitates in the real
time by using the Agent Banking Service. If the receiver has only a mobile phone number, she/he
can make fund transfer easily and quickly in the Agent. Daily cash transactions can be withdrawn
safely, easily and quickly at not only nearer CB Banks but also Easi Mobile Agents of CB Bank.
Nowadays CB Bank has been arranging to use its Agent Banking Service across the
country of Myanmar. CB Bank also arranges to use Mobile Banking not only in the internet but
also in USSD and SMS. To become as agents, they must save grantee deposits available in CB
Bank. Agents who fulfill with required qualifications will be appointed. CB Bank always
welcomes the people who would like to make Easi Mobile Agents from different regions. CB
Bank said that Easi Mobile Agents will be founded across the country.

5.3 CB Co-Branded Debit Card (MPU-JCB)

A debit card, also known as a bank card, plastic card or check card, is that can be used
instead of cash when making purchases. It is similar to a credit card, but unlike a credit card, the
money comes directly from the user's bank account when performing a transaction. CB Bank has
three types of debit cards, i.e. Standard, Gold and Platinum.

CB Bank’s Debit Card provides the customers worry-free travel experience as they do not
have to carry loads of cash. Any purchase could be made with any Point-Of-Sales machine that
bears JCB logo. If customers need cash, they may withdraw cash from any ATM that bears JCB
logo. Convenience and Security are the privileges CB Bank offer them with this card.

(a) For students – payment for exam fees, school fees online.
(b) For business – payment goods and services at overseas, book hotels online, online
shopping.
(c) For government officer – payment for hotel booking, conference fees and seminar
fees.
(d) For medical tourists – payment for hospital bills and accommodation fees.

5.4 CB Bank Credit Card (MPU-UPI)

People can now use CB Bank’s credit card for both local and international shopping. And
with CB Bank’s top of the line security people no longer have to worry about carrying around
money anywhere they go. CB Bank has three types of credit cards - Classic card, Gold card,
Platinum Card.
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6. CB Bank’s Mobile Banking

Mobile banking refers to the use of a smartphone or other cellular device to perform online
banking tasks while away from your home computer, such as monitoring account balances,
transferring funds between accounts, bill payment and locating an ATM. Mobile banking
applications for Android, iPhone and Blackberry, connect the user directly to the bank server for
complete banking functionality without having to navigate a mobile web browser. These
applications can be downloaded either through the bank's website or through the iTunes store.

6.1 CB Pay
CB Pay is the latest update products from CB Bank. CB Pay Features are transfer, pay/
request, mobile top-up, cash-out, card payment and bill payment. Customer can transfer money to
all CB Bank customers with ATM card number, Account number, Phone number (CB pay
number) or even with NRIC number for those who do not have bank account/ ATM or CB pay
wallet account.
Customer can pay or request money with dynamic QR code within CB pay users and can
make payment with static QR code at stores, restaurants or taxi drivers. They can check the
default account’s balance at sneak peak Top-up mobile (MPT, MecTel, Telenor, Ooredoo).

Customer enjoy services like ATM card application, loan application or cheque book
requests. They pay their bills such as electricity bill, 4-TV bill or insurance. They can top-up
Master/Visa cards and repay credit card at the nearest CB Bank ATMs/CRM, branches, Exchange
Counters, CB agents and Merchants locations on-the-go.

7. CB Bank: Management
CB Bank aims to establish a quality bank will modern technology leading to a world
standard bank. Improvement in efficiency and balancing of staff performance are an imperative
management of CB Bank. In consideration of bank's risk management policy, the bank instructs
Compliance Department to follow the rules and regulations.
Under the management and direction of the Board of Directors, CB Bank has been able to
position itself as one the most well-known and reliable banks in Myanmar. CB Bank has the
following six management committee:

(a) Management and Human Resources Committee,

(b) The Credit and Assets Management Committee,

(c) IT and Banking Business Development Committee,

(d) Internal Audit Committee,

(e) New Branch opening committee, and

(f) Staff Ideology and Education Committee.
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7.1 Management and Human Resources Committee

In the operation of the Bank, the perfection of the dedication, capacity and capability
competences of the staff coupled with the compliance of the rules and regulations play an
important part. With this view in sight the Management, formed Human Resource Committee to
provide the necessary instructions and procedures. Thus the committee is functions
systematically.

7.2 The Credit and Assets Management Committee

The success and growth of banking business mainly depends on the acceptance of depends
and gratefully of qualified won. Aiming at this objective the Credit and Assets Management
Committee is formed to enable the bank to run efficiently and successfully and to watch the
management of credit constantly.

7.3 IT and Banking Business Development Committee

From conventional banking such as a acceptance of deposits, issue of loan, and financial
services are reformed. Security and services are conducted in accurate, prompt, right way. As the
network of Banking business becomes wider and wider, innovative services are introduced to
match changing with changing of the time. Online Banking has been introduced throughout the
country.
CB Bank introduced the use of ATM (Automatic Teller Machine) to the Public. This
committee was formed in order to launch new product such as credit card when opportunity
occurs to be in time world economic condition. In this way new idea, new system and plan are
always thought of whenever such opportunity is open to the Bank in time with international
economic conditions.

7.4 Internal Audit Committee

This Committee was formed to overseer whether operation of banking business and cash
management are strictly adhered to the bank procedures and ensuring that rules and regulation are
observed and guided accordingly.

7.5 New Branch opening committee

New branch opening committee was formed to monitor in opening new branches in
suitable location in the country in real time.

7.6 Staff Ideology and Education Committee

In accordance with BOD resolution passed by the meeting of Board of Directors, this
committee was formed to educate the staff to be morally strong, dedicated, and to discharge the
duty with integrity.
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8. CB Bank’s Awards
For the top management of CB Bank systematically manages under Law and Regulation,
CB Bank has got many awards from 2013 to now.
CB Bank wins the following seven awards in this year 2018:

(a) Best Bank for SMEs in Myanmar (Asia Money),

(b) Best Corporate and Investment Bank in Myanmar (Asia Money),

(c) Best Digital Bank in Myanmar (Asia Money),

(d) Best Bank in Myanmar (Global Finance),

(e) Best Trade Finance in Myanmar (Asset Asian Awards -AAA),

(f) The Best Cash Management Bank in Myanmar (The Asian Banker), and

(g) The Best Trade Finance Bank in Myanmar (The Asian Banker).

9. Bank Profitability
Profitability is a key parameter in assessing the performance of any business firm. The
performance of the bank is measured on the basis of its profitability. To evaluate the profitability
performance of the banks largely ratios are used as a tool for comparison. The ratios commonly
used are: Return on Assets (ROA), Return on Equity (ROE), Capital Adequacy Ratio, Loans To
Deposit Ratio, Liquidity Ratio and Reserve Ratio.

9.1 Return on Assets (ROA)

Assets are used by businesses to generate income. Loans and securities are a bank's assets
and are used to provide most of a bank's income. However, to make loans and to buy securities, a
bank must have money, which comes primarily from the bank's owners in the form of bank
capital, from depositors, and from money that it borrows from other banks or by selling debt
securities. However, not all assets can be used to earn income, because banks must have cash to
satisfy cash withdrawal requests of customers.

9.2 Return on Equity (ROE)

The return on equity is what the bank's owners are primarily interest in because that is the
return that they earn on their investment, and depends not only on the return of assets, but also on
the total value of the assets that earn income. However, to purchase more assets, a bank needs to
pay for it either with more liabilities or with bank capital. Therefore, if the owners want to earn a
greater return, they would rather use liabilities rather than their own capital because this greatly
increases their return.
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9.3 Capital Adequacy Ratio

Capital Adequacy Ratio is a measure of the amount of a bank’s capital expressed as a

percentage of its risk weighted assets. Banks are required to maintain the Capital Adequacy Ratio
as follows:

(a) Regulatory capital adequacy ratio is 8%;

(b) The minimum Tier I Capital Adequacy Ratio is 4%.

(c) In meeting the capital adequacy ratio, elements of Tier 2 or supplementary capital, may
be included subject to approval of the Central Bank of Myanmar up to a maximum of
100% of Tier 1 or core capital.

9.4 Loans to Deposit Ratio

The loan-to-deposit ratio is used to assess a bank's liquidity by comparing a bank's total
loans to its total deposits for the same period. This number is expressed as a percentage. If the
ratio is too high, it means that the bank may not have enough liquidity to cover any unforeseen
fund requirements. Conversely, if the ratio is too low, the bank may not be earning as much as it
could be.

9.5 Liquidity Ratio

Liquidity ratios are a class of financial metrics used to determine a debtor's ability to pay
off current debt obligations without raising external capital. Liquidity ratios measure a bank's
ability to pay debt obligations and its margin of safety through the calculation of metrics including
the current ratio, quick ratio and operating cash flow ratio.

9.6 Reserve Ratio

The reserve ratio is the portion of reservable liabilities that depository institutions must
hold onto, rather than lend out or invest. This is a requirement determined by the country's central
bank.

10. Financial Technology Trends

Before reviewing the financial technology trends, we need to see how many industrial
revolutions happened all over the world. The Industrial Revolution was a time when the
manufacturing of goods moved from small shops and homes to large factories. This shift brought
about changes in culture as people moved from rural areas to big cities in order to work. It also
introduced new technologies, new types of transportation, and a different way of life for many.

The First Industrial Revolution began in the 18th century, when agricultural societies
became more industrialized and urban. This transition included going from hand production
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methods to machines, new chemical manufacturing and iron production processes, the increasing
use of steam power, the development of machine tools and the rise of the factory system.

Nearly at the end of the 19th century, the Second Industrial Revolution, also known as
the Age of Science and Mass Production, began. Things started to speed up with a number of key
inventions. New technological advancements initiated the emergence of a new source of energy:
electricity, gas and oil.

Beginning in the 1950s, the Third Industrial Revolution brought semiconductors,

mainframe computing, personal computing, and the Internet – the digital revolution. Things that
used to be analog moved to digital technologies, like an old television we used to tune in with an
antenna (analog) being replaced by an Internet-connected tablet that lets us stream movies
(digital). The move from analog electronic and mechanical devices to pervasive digital technology
dramatically disrupted industries, especially global communications and energy. Electronics and
information technology began to automate production and take global supply chains.
Today the Fourth Industrial Revolution (4IR) is underway which builds upon the third
revolution and the digital revolution. It is marked by emerging technology such as Cloud,
Artificial Intelligence, Robotics, nanotechnology, biotechnology, the Internet of Things, fifth-
generation wireless technologies (5G), 3D printing and fully autonomous vehicles.
Technology and human life cannot be separated; society has a cyclical co-dependence on
technology. We use technology; depend on technology in our daily life and our needs and
demands for technology keep on rising. Humans use technology to travel, to communicate, to
learn, to do business and to live in comfort. However, technology has also caused us concerns. Its
poor application has resulted in the pollution of the environment and it has also caused a serious
threat to our lives and society.
More banks are investing in new technologies to improve customer experience. We can
see a rapid progress in disruptive technologies bringing a paradigm shift in the thought process of
institutions towards technology adoption and transformation.

A survey across some of the leading banks in Asia Pacific on their key priorities in
technology investment in 2017 highlights following five focus areas.

10.1 Digital and mobile experience

As banks compete with new agile entrants that are readily adaptive to new technologies
and not encumbered by the legacy baggage, they will need to focus on bringing holistic
digitisation. New innovations will be seen in mobile banking services as banks move towards a
"digital first" strategy, providing and building services using smartphone as the focal point. There
will be increased integration of social media services with mobile apps, wallet and bank services.
Mobile technology is changing the game for financial inclusion and the disruption from emerging
markets could be taken into the developed markets such as mobile wallets.

10.2 Big data, AI and Advanced learning

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Another top priority among banks is strengthening their data and analytics capability as
the universe of digital information grow exponentially, bringing new opportunities for improved
actionable customer insights, especially from big data. Artificial intelligence (AI) is expected to
evolve from a buzzword into a critical capability that will help drive better outcomes for customer
and increase efficiency for banks. Banks will increase the deployment of machine learning, AI
and robotics.

10.3 Open API Bank

New fintech start-ups are coming up with innovative solutions such as simple Application
Programming Interfaces, APIs, to improve customer journeys. With open API, banks can plug and
play into the digital ecosystem, building a foundation for "banking as a service".

10.4 Blockchain
Among emerging technologies, distributed ledger technology (DLT) has generated
significant interest in the market. And it will continue to witness new innovations. It is still in the
early development phase, though we may see some commercial applications within the next
couple of years. A distributed ledger, also called Distributed Ledger Technology, is a consensus
of replicated, shared, and synchronized digital data geographically spread across multiple sites,
countries, or institutions. There is no central administrator or centralized data storage.

10.5 Cybersecurity
Building cybersecurity in the digital and more so in the IOT environment will be
challenging, which will demand multilayered security, enabled with analytics insights, biometrics
and adaptive security measures. New authentication technology is expected to change the way
customers transact with their banks. Banks are already exploring fingerprint, iris and palm vein
recognition across digital services.

11. Conclusion
In conclusion, we, group (1), presented on the following:

 Financial Institution: 3 Major Types - Depository, Contractual and Investment

Institutions.

 Myanmar Banking History: British Colonial, Japanese Occupation, Socialist Banking

with 3 demonetization waves, Opening Private Banks and Bank Notes.

 CB Bank: in 1992 100% private owned Bank, in 2004 changed to Public Company,
Products and Services.

 CB Bank Traditional Banking: 6 types of Deposits.

 CB Bank E-Banking: iBanking, EASi Mobile, MPU-JCB Debit Card, 3 Credit Cards,
CB Pay.
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 CB Bank Mobile Banking: Channels & Services.

 CB Bank Management: Governance and Organization Structure and 6 Committees and

Awards.

 Bank Profitability: ROA, ROE, Capital Adequacy Ratio, Loans to Deposit Ratio,
Liquidity Ratio and Reserve Ratio.

 Financial Technology Trends: Industrial Revolutions, Five Big Areas in Financial

Technology - Digital and Mobile Experience, Big Data, AI and Advance Learning,
Open API Bank, Block chain, Biometrics and Adaptive Security.

In order to develop the banking sector, it is very clearly that every bank in Myanmar needs
to change their financial services with the flow of global financial technology change. By
implementing these, the skill of management is a key driver for achieving accelerated
improvement and performance.