3.2.2 Design Policy To promote Phase 2 development and effectively use grant aid, it is important to select a pragmatic approach and solutions based on the situation in the Myanmar financial sector instead of simply covering previous all requirements. According to these requirements and considering the challenges in 1.1.2 or the change of environment in 1.2, the following must be noted as the basic policy for implementing Phase 2 development:  Consider that an enhancement by Phase 2 development to be a key driver for the accelerating use of CBM-NET  Consider the current situation of settlement business processes and practices of CBM and FIs  Communicate with stakeholders (especially with user FIs) and share the progress, technical information, and issues with them  Consider a reduction in operating and maintenance costs and then make a choice for easy maintenance and flexible infrastructure to reduce the burden of IT officials of CBM  Refer the trend of neighborhood and relevant institutes The major policy for systemization of central banking in Myanmar is to introduce a system that adopts the following functions, facilities, and technologies. Table 3-4 Design policy for CBM-NET Phase 2 Design policy To adopt international standard Efficient for high volume transaction Approach Support of ISO 20022 standard  Since ISO 20022 is an international standard which will be used for cross-border transactions and massages related to crossborder transactions, it should be supported on related messages. Introduction of STP  To pursue the goal of handling more transactions, STP should be promoted to FIs which have CBS and wish to connect.  To take in the participation and utilization of FIs who have strong active needs, the modification of CBS for connecting STP should be borne by FIs. Introduction of Liquidity saving features and message queuing  To promote the use of CBM-NET, this function will be implemented with consideration of the operation suitability in Myanmar (ex. to integrates with RTGS account to simplify the operation work for FIs, etc.). 20

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