Executive Summary
1. Overview of the Project
1.1 Background
Central Bank of Myanmar (hereinafter, CBM) introduced Central Bank of Myanmar
Financial Network System (hereinafter, CBM-NET) in January 2016 under the
Japanese official development aid “THE PROJECT FOR DEVELOPMENT OF ICT
SYSTEM FOR CENTRAL BANKING” (E/N: October 2013, JPY 5.1 billion)
(hereinafter, Phase 1). CBM-NET makes a series of manual-based operations such
as the management of current account and its outstanding, issuance/interest
payment/redemption of government bond and its balance into system-based ones. In
addition, as a result of financial system reform, for example dematerialization of
government bond and the introduction of government bond book-entry system etc.,
the financial infrastructure in Myanmar has been developed step by step.
On the other hand, comparing to the situation when the first project preparatory
survey was conducted in November 2013, the environment surrounding financial
infrastructure has been widely changed along with the economic growth.
Changes in the retail environment in Myanmar: The country has entered a
transition period from payment on a cash basis to an electronic settlement
basis because of the penetration of mobile banking services.
Changes in trends outside Myanmar: There are some moves towards building
a cross-border settlement infrastructure within the ASEAN region, such as
activities of the ASEAN + 3 Bond Market Forum (ABMF).
Sophistication of systems of commercial banks in Myanmar: The Core
Banking System (hereinafter, CBS) is being introduced, and the needs of STP1
are increasing.
Improvement of functions of the central bank system in other countries: The
RTGS 2 system with liquidity-saving features, function of forward dating
1
Straight Through Processing: To process with connecting CBSs and systems in central bank
directly via network.
2 Real Time Gross Settlement: A settlement method to process every single payment instruction in
real time (immediately after the instruction arrives at central bank).
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