CENTRAL BANK OF MYANMAR

THAW KA NYEINFINANCIAL INSTITUTIONS SUPERVISION DEPARTMENT

CBM Section 68 and FIL Section 91

For the purpose of financial stability, theCentral Bank shall be responsible for issuinglicence, withdrawing licence, inspecting,supervising and regulating financialinstitutions, and may give such directions asmay be necessary to ensure solvency andsoundness of such institutions.

The Central Bank shall cause an on-siteexamination to be made of each bank atinternals not exceeding two years.

ROLES AND RESPONSIBILITIES OF DEPARTMENTS

ACCOUNTS DEPARTMENT

Financial Institutions Supervision Department(FISD)

Foreign Exchange Management Department(FEMD)

Payments and Settlement Department

Banking Regulation and Anti-money Laundering Department(FIR)

Financial Market Department

SUPERVISION SCOPE UNDER FISD4 State-owned

Banks

48Representative Offices

25 Finance Companies

24 Private Banks

13 Foreign Banks Branches

Central Bankof Myanmar Supervisi

onScope

LAWS AND REGULATIONS GOVERNING THE FINANCIAL INSTITUTIONS

Laws Foreign Exchange Management Law (August 2012)

Central Bank of Myanmar Law (July 2013)

Financial Institutions Law ( January 2016)

Regulation Microfinance BankConstruction BankFarmer

Development Bank

AML/ CFT Mobile

Financial Services

Liquidity RatioCapital

Adequacy Ratio

Assets Classification and ProvisioningLarge

ExposureDirectives / Instructions

AML/ CFT Risk Based Management GuidanceDirective for the

CDD Measures

Net Open Position

Credit Risk Management

DividendsRevaluation on Fixed Assets

Financial Positions Branch number, Deposits, Loans, Income, Expenditure, Cash, CBM

Daily

Net Open Position in foreign currencies

Net open positions by USD, EUR, SGD and all other currencies and aggregate net open position

Daily

Liquidity Position Liquid assets and volatile liabilities by category and by USD, EUR, SGD, all other currencies and in aggregate

Weekly

(Notification No. (19/2017)Balance sheet Balance sheet items and total of off-balance sheet

business. Monthly

Income statement Income and expenses by currency, interest/non-interest, credit provisions, revaluation gains/losses

Monthly

Capital Adequacy Report (Notification No. (16/2017)

Composition of capital, RWAs by risk weighting category, capital ratios

Monthly

Asset classification and Listing of all NPLs, showing name, date of classification, interest in suspense, amount of provisions etc.

Monthly

(Notification No. (18/2017)Large exposures All large exposures over 10% of core capital with

amount, days past due, nature and value of collateral, sector, % of total capital etc.

Quarterly (Notification No. (17/2017)

Loans by sector and security type Total loans by sectoral classification (11 sectors) and type of security (7 types, including land and buildings, gold, mortgages and other)

Quarterly

Annual financial statements Audited financial statements and auditor s report Annually

EXAMINATIONS OF FINANCIAL INSTITUTIONS

Quarterly5 Large Banks

Semi-annually5 Medium Banks

Annually5 Small Banks / 9 Specialized Banks13 Foreign Banks25 Finance Companies

CAMEL Rating:

CAPITAL ADEQUACYASSET QUALITYMANAGEMENTEARNINGSLIQUIDITY

FINANCIAL OPERATIONALMANAGEMENT

Onsite FindingsFinancial Returns

Liquidity Ratio Analysis

Capital Adequacy Ratio Analysis

Trend Analysis

Capital and Earning

Internal Audit Report

External Audit Report

BOD Minutes

Other External Sources

Meeting with Management

Sources of Information for CAMEL Rating

CAMEL Provisions

1 Strong performance, sound management, no cause forsupervisory concern

2Fundamentally sound, compliance with regulations, stable, limited supervisoryneeds

3Weakness in one or more components, unsatisfactory practices, weakperformance butlimited concernforfailure

4Serious financial and management deficiencies and unsound practices. Needclose supervisionand remedialaction.

5Externally unsafe practices and conditions, deficiencies beyound managementcontrol. Failure ishighly probable and outside financialassiatance need.

CAPITAL TOTAL RISK-BASED CAPITAL/ RISK-WEIGHTED ASSETS (REGULATORY CAP)TIER 1 RISK-BASED CAPITAL/ RISK-WEIGHTED ASSETS(TIER 1)TIER 1 LEVERAGE CAPITAL/ AVERAGE TOTAL ASSETS (TO CALCULATE)

AssetNPL / Regulatory capital (tier 1+2)NPL / total assets ( no deduct AEG)NPL/ gross loans

Liquidity Broad Liquidity IndexQuick Liquidity Index

CAMEL RATING CHARTCurrent Examination Prior Examination Prior Examination

Exam Date:

Composite Rating:

Component Ratings:

Capital

Asset Quality

Management

Earnings

Liquidity

Examiner-in-Charge

BANKING SECTOR GROWTH

-

5,0 00, 00 0.0 0

10, 000 ,0 00. 00

15, 000 ,0 00. 00

20, 000 ,0 00. 00

25, 000 ,0 00. 00

30, 000 ,0 00. 00

35, 000 ,0 00. 00

20 17 20 18 20 17 20 18

Priv ate B anks Forei gn Banks

Assets De posits Loans

THANK YOU ALL