Yangon, Myanmar, April 28, 2017—IFC,
a member of the World Bank Group, has successfully supported the Central
Bank of Myanmar to develop a regulation for credit reporting—a key step
in building up modern financial infrastructures that are necessary to improve
access to credit for consumers and micro, small and medium enterprises
in the country.
The Central Bank of Myanmar (CBM) issued the Regulation on Credit Information
Reporting System on March 31, 2017, which provides a basis for the establishment
and operations of credit reporting companies, such as credit bureaus.
About 70 officials and representatives from the CBM, relevant government
agencies, the Myanmar Banks’ Association, local and international banks,
microfinance institutions and other lending agencies, as well as international
development partners today attended an event to promote the new regulation.
The participants deliberated on the key features of the Myanmar credit
reporting regulation and its implications for the lending industry.
“The regulation is fundamental for credit information sharing among the
lending institutions through credit bureau, which pools information from
various types of creditors and public data sources on individual and business
borrowers,” said H.E. Daw Khin Saw Oo, Deputy Governor of the CBM. “With
an effective enabling environment that the enactment of this regulation
brings, we hope to see the very first credit bureau come online soon, and
eventually a positive change in our credit culture.”
Over the past three years, IFC has worked with the CBM and other key stakeholders
on the development and consultation of this new regulation. Among others,
it sets up the licensing requirements and operating conditions for credit
bureau as well as data protection requirements, consumer rights, and the
obligations of data providers, etc. It is considered a progressive regulation
in line with international best practices.
“The issuance of the credit reporting regulation represents a key milestone
in the economic reform of the country and is also a significant achievement
by the CBM,” said Vikram Kumar, IFC Country Manager for Myanmar. “An
effective credit information sharing regime will help increase access to
finance for borrowers, particularly micro, small and medium enterprises.
This is a critical first step for a move towards interest rate liberalization
in Myanmar as it will lead to the adoption of risk based pricing for loans.
The WBG will continue to drive significant improvements in Myanmar’s lending
market in the future by going on to support secured transaction reform
which will allow for movable assets to be utilized as collateral for lending."
IFC, in partnership with the
United Kingdom’s Department for International Development,
has been assisting the CBM to develop a comprehensive and modern credit
reporting system. IFC will continue to support the central bank to help
strengthen its supervisory capability on credit reporting services providers,
and educate the public on financial consumer protection and credit information
sharing; and to facilitate credible private sector players to make use
of the new opportunities in credit reporting development. A priority for
IFC in Myanmar is to work with the government and the financial sector
to improve access to finance for microentrepreneurs as well as small and
medium enterprises so that more segments of society can benefit from the
country’s economic growth.
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in emerging markets. Working
with more than 2,000 businesses worldwide, we use our six decades of experience
to create opportunity where it’s needed most. In FY16, our long-term investments
in developing countries rose to nearly $19 billion, leveraging our capital,
expertise and influence to help the private sector end extreme poverty
and boost shared prosperity. For more information, visit