Ministry of Planning and Finance

Myanma Economic Bank

Brief 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 people's 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 People's Bank of the Union of Burma Act of 1967, all the nationalized banks were merged together as a monolithic bank called People's 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 People's 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 (315) bank branches, (14) State and Regional 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. MEB's management, together with the support from its 3 policy development entities – the Board of Directors, the Credit Committee and the Executive Committee- oversees MEB's daily operations.

Six Head Office Departments

1. Administration Department

2. Accounts Department

3. Loans and Supervision Department

4. Savings and Development Finance Department

5. Internal Audit Department

6. Research, Training and Public Relations Department

Vision

As a stated owned financial institution, MEB aims to provide financial services to public by law, regulations and procedures that change in policy from financial sector.

Policy

• To sustain public trust on MEB
• To harmonize services like State Fund Accounts services , commercial banking and development  policy loan services
• To upgrade banking services with modern technology in accordance with international banking standard
• To enhance financial services among public

Mission

• To provide people centered financial services effectively by using modern technology under the guidance of the Ministry of Planning and Finance for successfully implementation of the State’s economic policy
• To participate in financial sector for implementation of the State’s policy successfully
• To  increase income by promoting financial services
• To enhance human resources,  research and public relations

Major Functions

MEB's 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.