A Brief History
Myanmar Economic Bank (MEB), which was established on 2 April 1976, has descended from the State Commercial Bank (SCB) established in 1954, which provided a wide range of commercial banking services across the country.
Myanmar changed its course to socialism in 1962 and the economic system is also transformed to a planned economy. This change brought a monolithic banking system in the 1960s and all existing banks were nationalized in 1963. By the People's Bank of the Union of Burma Act of 1967, all the nationalized banks were merged into a mono-bank called People's Bank of the Union of Burma. The SCB became a unit of that bank, undertaking the commercial banking operations. In accordance with the Bank Act of 1975, the People's Bank was re-established into four state-owned banks, namely, the Union of Burma Bank (UBB), the Myanma Economic Bank (MEB), the Myanma Foreign Trade Bank (MFTB) and the Myanma Agricultural Bank (MAB) in 1976. Since then, the MEB operated domestic commercial banking businesses.
In 1988, Myanmar has pursued the market oriented economy and consequently, the financial sector took steps to reform in accordance with the new economic system. In furtherance of the development of the market economic system, the new banking laws, namely, the Central Bank of Myanmar Law, the Financial Institutions of Myanmar Law and the Myanma Agricultural and Rural Development Bank Law were enacted in 1990. The Financial Institutions of Myanmar Law recognized MEB as an existing state-owned commercial bank.
MEB Head Office was started to open in Nay Pyi Taw in February 2006 and Administration Department and respective sections of head office departments were moved from Yangon to Nay Pyi Taw since May 2006. The grand opening of the new Myanma Economic Bank building was held on 21 October 2008 and Nay Pyi Taw Bank Branch commenced its banking operations on the same day.
MEB is under the purview of the Ministry of Finance and Revenue. Managing Director is the Head of the bank. Four General Managers support the Managing Director, taking charge of duties delegated to them. Currently it has 697 officers and 7549 staff members.
MEB has three policy development entities:-
1. the Board of Directors
2. the Executive Committee and
3. the Credit Committee.
MEB's Organizational Chart
MEB mainly conducts commercial banking services across Myanmar through its network consisted of 307 bank branches, 14 State and Divisional Banking Offices and 6 Head Office Departments.
As the Financial Institutions of Myanmar Law grants a wider coverage of banking services to all the banks in the country, MEB has been operating both domestic and foreign banking services.
MEB's paid-up capital is Kyats 420 millions, fully subscribed by the state.
It provides commercial banking services as well as development banking services. It renders banking services to both of the private sector and the state sector. MEB's major functions include the followings-
-accepting current and time deposits
-collecting and dealing in cheques and other instruments
-issuing of letters of credit and traveller's cheques
-dealing of foreign exchange
-purchasing and selling of bonds or other forms of securities on behalf of
-providing safe custody services
-collecting and transmitting money
-providing guarantee services and trustee business
-maintaining state funds accounts
-disbursement of pension
-undertaking the functions of Government Employees
-as the agent of the Central Bank of Myanmar maintaining currency chests
across the country
-facilitating trade activites in border areas, sharing borders with China,
Thailand, Bangladesh and India.
Currently, Myanma Economic Bank offers an interest rate of 8% on saving deposits, 9% on saving certificates, and 8.25% on (3) months, 8.50% on (6) months and 8.75% on (9) months fixed deposits. The bank takes interests on loans to State Economic Enterpirses at 4%, loans to the Myanma Agricultural Bank at 4%, loans to the Myanma Small Loans Enterprise at 9.5% and overdrafts to private sectors at 13%, respectively. Interest rates on medium term loans and long-term loans are 12.5% and 12.25% respectively.
Banking Services in Foreign Exchange
MEB is authorized to deal in foreign exchange. It facilitates trade activities in border areas as well. At present, MEB undertakes the following services for border trade
and normal trade settlements.
-Opening foreign currency demand deposit accounts both in Head Office and its authorized branches
-Foreign currency accounts transfer services
-Foreign currency remittances, both inward and outward
-Collection of foreign currency cheque, bills and payment orders
-Letter of Credit facilities for overseas trade
-Sales and purchases of foreign currencies to Government Department in township areas and border areas
-MEB branches on border areas undertake border trade settlements by using the U.S. dollar and bank drafts.
Myanma Economic Bank
Address : No.26, Thiri Kyaw Swar Street, Nay Pyi Taw
Email : firstname.lastname@example.org
Phone: 095-067-421882, 095-067-421483
Fax : 095-067-421483
Web Site : http:/www.mebank.com.mm