1.1.2 Challenges of the financial sector In this survey, we focused on surveying the current situation based on interviews and questionnaires to FIs in Myanmar, including MPU and others in addition to the banks mentioned above. According to the survey, the main issues in the financial sector in Myanmar are listed as follows: (1) Cash oriented mindset, cash society, (2) delay in systematization of FIs, (3) undeveloped settlement risk management, and (4) immature financial markets. (A) Cash oriented mindset, cash society Cash is particularly preferred and used in Myanmar. At the windows of the FI, you often come across the scene where people hand a clipped wad of cash over the counter whether it is in the city or not, and there is also a survey result that most salary payments are made in cash. (“The Global Findex Database 2014” by the World Bank shows that 95% of non-regular employees receive salaries in cash.) Credit card usage is increasing in merchant stores, hotels, and other retail establishments, but the need for cash seems to be deeply rooted. One of the reasons is the low bank account holding rate. (The account holding rate for 15 years or over is 23%, surveyed by Roland Berger in 2016.) Although the means for transfer not through bank accounts are gradually expanding, the advantage of bank accounts is unshakable, from the viewpoint of AML/CFT, as well as multipurpose use as means for receipt, payment, and transfer, thus, it is indispensable for the finance and economy of Myanmar to steadily promote to raise the bank account holding rate. Initiatives are also necessary to strengthen the institution and systems so that payroll payments, utility fee withdrawals, tax payments, public benefit payments, and other payments can be made via a bank account instead of paying in cash. At present, automatic transfer and automatic withdrawal across FIs are seldom carried out, and the institutions and systems to realize this are still undeveloped. What is considered to be one of the important steps for the society to de-cash is to develop payment system infrastructure similar to the so-called ACH and to enable automatic transfer and automatic withdrawal across FIs. Meanwhile, MEB, a national tax collection agency, is proceeding with the introduction of a CBS by the World Bank Project. If the transfer related to national tax payment can be done online by connecting the CBSs of MEB and the commercial banks in the future, it is assumed 4