Banking and Financial Sector Development
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) | Published August 24, 2013 - Deadline September 24, 2013
The financial sector of Myanmar is not able to sustainably and sufficiently render financial services needed by small and medium enterprises.
The regulative and operative framework of the financial sector in Myanmar is improved and thus enabled to provide the SME with the demand driven and economic services
Political partner in Myanmar:
Ministry of Planning and Economic Development of Myanmar
Implementation Partner: Central Bank of Myanmar, Banking Training Institute and other Institutions of the financial sector
SME-finance is basically non-existent in Myanmar. The current regulatory framework restrains banks in engaging with SME. Interest rate limits, as well as excessive collateral, liquidity and capital requirements pose sincere challenges for banks to engage in business with SME. We expect a more enabling regulatory framework to be implemented towards the end of 2013 / beginning of 2014.
Human capacities in the financial sector do not fulfil international standards.
The project operates in four major areas:
1. The first area aims at supporting the Central Bank of Myanmar to create a regulatory framework for formal financial institutions.
2. The second area aims at strengthening the legal framework as well as human capacities with respect to financial accounting and auditing.
3. The third area aims at developing human capacities in the banking sector. In order to prepare bank employees for upcoming opportunities (also in the SME-sector), training institutions, such as the Myanmar Bank Training Institute, are to be strengthened in developing and offering appropriate courses to banks
4. The fourth area aims in assisting selected pilot institutions (Financial Institutions, FI) in offering demand-oriented and sustainable financial services to SME.
The tender will be related to the fourth area of the project, the strengthening of the FI with regards to capacity building and offering SME financial products.
The selection of partaking banks is based on common criteria of integrity, adherence to good governance and best practices. Confidentiality of the data and knowledge of internal topics of the banks is to be granted.
Currently, GIZ is screening and selecting three pilot banks. The pilot banks as well as specific support areas will be identified until the beginning of the official tender.
The strengthening of the FI will consist of several modules to be developed and methods to train and support demand driven the banking staff in the management and operational functions. The methods may contain general trainings to operational staff and management, “on-the-job” trainings, seminars, consultancy, exchange platforms, formats for information sharing, other support (study tours, exchange events, market studies)
Activities to support the selected banks with respect to SME-Finance may include amongst others:
- Individual needs analysis per selected bank
- Development or adjustment implementation of proper MIS
- Design and implementation of modules for trainings (loan officers, management)
- On-the-job training
- Support on strategy development
- Support on the organizational structure and development
Next to the intensive support of the selected pilot banks, the required tasks will also include measures to increase awareness, knowledge, and capacities of the whole banking industry with respect to SME-Finance.
Lessons learnt of the pilot banks should be shared with other interested banks. General trainings regarding SME finance openly offered may complement the services rendered.
Monitoring, evaluation and reporting are integral parts of the required tasks.
Please note that the implementation of the project activities is subject to the approval of the Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung (BMZ – German Federal Ministry for Economic Cooperation and Development).