Myanmar Agricultural Development Bank : Initial Assessment and Restructuring Options

World Bank

Myanmar Agricultural Development Bank : Initial Assessment and Restructuring Options

Autores

World Bank

Editor

Bangkok

Descripción

Myanmar is an agricultural country. It is estimated that the agriculture sector represents between 35 to 40 percent of gross domestic product (GDP) and that up to 70 percent of the labor force (of 32.5 million) is directly or indirectly engaged in agricultural activities or depend on agriculture for their income. Given agriculture's important contribution to the economy, the modernization of the agriculture sector is a top priority in the economic and social development agenda of the Government of Myanmar. Among the government institutions supporting the agriculture sector, the Myanmar Agriculture Development Bank (MADB) plays an important role. MADB was established in June 1953 by the Government of Myanmar to support the development of agriculture, livestock, and rural enterprises in Myanmar. MADB is currently the largest financial institution serving the rural areas and financing agriculture activities. At the end of 2012, MADB served 1.87 million customers, mostly farmers, and had a network of 206 branches (which accounted for 23 percent of all banks' branches in Myanmar). Since its creation, MADB has played an important economic and social role by providing loans to a large segment of low-income households engaged in agricultural activities. Historically, several agriculture banks around the world have failed due to poor corporate governance, inadequate risk management capability, unsustainable business models, capture by their own clientele, or undue political interference in their lending decisions. Therefore, authorities should ensure that MADB is transformed into a sound, well-administered, and financially sustainable institution, able to withstand undue political interference and able to operate with the highest standards of corporate governance and transparency. In this context, the report is organized as follows: chapter one gives diagnostic of MADB; chapter two presents options for the transformation of MADB; chapter three presents lessons from international experience; and chapter four gives conclusions.

Palabras clave

ACCESS TO FINANCE, ACCOUNTING, ACCOUNTING STANDARDS, ADMINISTRATIVE BARRIERS, ADMINISTRATIVE CONTROLS, ADVISORY SERVICES, AGRICULTURAL ACTIVITIES, AGRICULTURAL BANKS, AGRICULTURAL COOPERATIVES, AGRICULTURAL CREDIT, AGRICULTURAL DEVELOPMENT BANK, AGRICULTURAL INCOMES, AGRICULTURAL SECTOR, AGRICULTURE BANK, AGRICULTURE BANKS, ANTI-MONEY LAUNDERING, AUDIT COMMITTEE, BALANCE SHEET, BANK ACCOUNTS, BANK BRANCHES, BANK DEPOSITS, BANK OFFICE, BANKING INDUSTRY, BANKING SERVICES, BANKING SYSTEM, BANKRUPTCY, BANKS, BORROWER, BORROWING, BORROWINGS, BUSINESS ACTIVITIES, CAPITAL ADEQUACY, CAPITAL BASE, CAPITAL FUND, CAPITAL MARKETS, CASH FLOW, CASH MANAGEMENT, CENTRAL BANK, COLLATERAL, COLLATERAL REQUIREMENTS, COMMERCIAL BANK, COMMERCIAL BANKS, COMMODITY PRICE, CORPORATE GOVERNANCE, CREDIT ANALYSIS, CREDIT BUREAU, CREDIT DECISION, CREDIT DECISIONS, CREDIT GUARANTEES, CREDIT HISTORY, CREDIT MARKETS, CREDIT POLICIES, CREDIT PRODUCT, CREDIT RISK, CREDIT SCHEME, CREDITORS, CUSTOMER SATISFACTION, DEBT, DEBT BURDEN, DEBT FINANCE, DEBTORS, DEMAND FOR CREDIT, DEPOSIT, DEPOSIT PRODUCTS, DEPOSITORS, DEPOSITS, DEVELOPMENT BANKS, DEVELOPMENT FINANCE, DEVELOPMENT FINANCE INSTITUTION, DISBURSEMENT, DIVERSIFICATION, DOMESTIC BANK, DONOR FUNDS, EMPOWERMENT, ENDOWMENTS, EQUIPMENT, EQUITY FINANCE, EXCHANGE RATE, EXCHANGE RATES, EXPENDITURES, EXPORT EARNINGS, EXPORTERS, FARM MACHINERY, FARMER, FARMERS, FIDUCIARY SERVICES, FINANCE COMPANY, FINANCES, FINANCIAL DIFFICULTIES, FINANCIAL INSTITUTION, FINANCIAL INSTITUTIONS, FINANCIAL INSTRUMENTS, FINANCIAL INTERMEDIARIES, FINANCIAL PRODUCT, FINANCIAL PRODUCTS, FINANCIAL RESOURCES, FINANCIAL SECTOR INDICATORS, FINANCIAL SERVICES, FINANCIAL STATEMENTS, FINANCIAL SUPPORT, FINANCIAL SYSTEM, FINANCIAL SYSTEMS, FINANCIAL VIABILITY, FINANCING NEEDS, FISCAL BURDEN, FISCAL RESOURCES, FOREIGN BANK, FOREIGN INVESTORS, GOOD CREDIT, GOVERNMENT FUNDING, GROSS DOMESTIC PRODUCT, GROUP GUARANTEES, GROUP LOANS, GUARANTOR, GUARANTORS, HOLDING, HOUSEHOLDS, HUMAN RESOURCES, INDEBTEDNESS, INDIVIDUAL LOAN, INFORMAL LENDERS, INFORMATION DISCLOSURE, INFORMATION SYSTEM, INFORMATION SYSTEMS, INFORMATION TECHNOLOGY, INNOVATIVE FINANCIAL INSTRUMENTS, INSTALLMENTS, INSURANCE, INSURANCE PRODUCTS, INTEREST RATE, INTEREST RATES, INTEREST RATES ON LOANS, INTERNAL AUDIT, INTERNATIONAL BANK, INTERNATIONAL BANKS, INTERNATIONAL FINANCE, INTERNATIONAL STANDARDS, INVESTMENT LOANS, LAND OWNERSHIP, LENDER, LENDER OF LAST RESORT, LENDING DECISIONS, LENDING POLICIES, LENDING PORTFOLIO, LETTERS OF CREDIT, LIQUID ASSETS, LIQUIDITY, LIQUIDITY RATIO, LIQUIDITY RISK, LIVING STANDARDS, LOAN, LOAN AMOUNT, LOAN AMOUNTS, LOAN APPLICATION, LOAN APPLICATIONS, LOAN CLASSIFICATION, LOAN GUARANTEES, LOAN OFFICERS, LOAN PORTFOLIO, LOAN PRODUCTS, LOAN RECOVERY, LOAN SIZE, LOANS TO FARMERS, MARKET INTEREST RATE, MARKET INTEREST RATES, MICROCREDIT, MICROFINANCE, MICROFINANCE INSTITUTIONS, MOVABLE ASSETS, NATURAL DISASTERS, NEW MARKET, OUTREACH, OUTSTANDING DEBT, OUTSTANDING LOANS, OVERDRAFT, PARTIAL CREDIT, POST OFFICES, PRIVATE BANKS, PRIVATE CREDIT, PRIVATE EQUITY, PRIVATE FINANCIAL INSTITUTIONS, PRIVATE FINANCIAL INTERMEDIARIES, PRIVATE FINANCIAL SECTOR, PRIVATIZATION, PROFITABILITY, PRUDENTIAL STANDARDS, RATES OF INTEREST, REPAYMENT, REPAYMENT HISTORY, RESERVE, RESERVE FUND, RETURN, RISK EXPOSURE, RISK MANAGEMENT, RISK MITIGATION, RISK OF LOSS, RISK PROFILE, RURAL BANK, RURAL CREDIT, RURAL FINANCE, SAVINGS, SAVINGS PRODUCTS, SECURITIES, SMALL LOANS, SMALLHOLDER, SMALLHOLDER FARMERS, SOCIAL DEVELOPMENT, SOLVENCY, SOURCES OF FUND, SOURCES OF FUNDS, SOURCES OF INCOME, SUPPLY CHAIN, TECHNICAL ASSISTANCE, TERM CREDIT, TRADE FINANCE, TRANSPARENCY, TRUST FUND, UNION, VENTURE CAPITAL, VILLAGE, VILLAGES, WAREHOUSE, WAREHOUSE RECEIPT, WAREHOUSE RECEIPTS, WAREHOUSES, WORKING CAPITAL