August 9, 2018
On August 8, the Japan International Cooperation Agency (JICA) signed a grant agreement with the Government of the Republic of the Union of Myanmar in Nay Pyi Taw, the capital city, to provide grant aid of up to 5.549 billion yen for the Project for the Development of Financial Market Infrastructures.
The project will upgrade the functions of the national payment system of the Central Bank of Myanmar (CBM-NET), which was introduced by the grant aid Project for Development of ICT System for Central Banking (grant agreement signed in 2013).
Accompanying socioeconomic development in Myanmar, there has been a rise in credit demand in the private sector, an expanding inflow of foreign investments, and a gradual increase in use of financial services by individuals, resulting in larger volumes of funds and data handled by financial institutions. With the rapid increae and diversification of financial transactions, as exemplified by the recent advent of mobile banking services, there has been a growing need to improve the efficiency of payment services using straight-through processing between CBM-NET and the core banking systems of commercial banks, and to handle the rising volume of retail payments. It is also necessary to respond to global trends, such as by promoting cross-border transactions and improving the resiliency of national payment systems.
By upgrading the functions of CBM-NET, the project will enable CBM-NET to address the increasing need for diversified financial transactions and to conform to international standards, which will eventually contribute to the stability of the financial system of Myanmar.
In addition to the grant aid project, JICA is supporting the institution building and operation/maintenance capacity building necessary for the national payment system, and capacity building related to monetary policy through the technical cooperation project for Modernizing the Funds Payment and Securities Settlement Systems in Myanmar.
|Country||Republic of the Union of Myanmar|
|Project title||The Project for the Development of Financial Market Infrastructures|
|Planned implementation period||32 months, including detailed design work and the bidding period|
|Executing agency||Central Bank of Myanmar|
|Target region, facilities||Nay Pyi Taw, Yangon, and Mandalay|
|Specific project details (provisional)||(1) Equipment procurement
• Upgrading of the CBM-NET application functions, including straight-through processing, ISO 20022, liquidity saving facility/queuing, automated clearing house, and disaster recovery
• Equipment procurement and installation (ICT equipment and infrastructure for the primary site and the disaster recovery site)
(2) Consulting services
Detailed design work, bidding assistance, construction supervision, and (as guidance in managing the facilities) preparation of manuals