Liquidity Ratio Requirement Regulation

Liquidity Ratio(ENG) 6-7-2017-5
The Republic of the Union of Myanmar
Central Bank of Myanmar
Notification No. (19/2017)
14th Waxing Day of Waso 1379 ME
July 7, 2017
------------------------------------------------- In exercise of the powers conferred under Section 36 and Section 184 of the Financial Institutions Law, and Sections 49 and 50 of the Central Bank of Myanmar Law, the Central Bank of Myanmar hereby issues the following Regulations:

1. These Regulations shall be called Liquidity Ratio Requirement Regulation.
2. These Regulations shall apply to all banks.
3. A bank shall maintain a minimum liquidity ratio of 20% at all times.
4. Every bank must calculate their daily liquidity ratio position and, report weekly average at
   the start of the succeeding week in accordance with the attached worksheet and reporting format to the Central Bank of Myanmar.
5. A bank that fails to maintain a minimum liquidity ratio may be subject to administrative
   penalties under section 97 of the Central Bank of Myanmar Law and maybe imposed under section 94 and 96 of the Financial Institutions Law and administrative penalties under section 154 of the said Law.
6. The Central Bank of Myanmar Instruction No.4 dated January 12, 1995 is hereby repealed.
7. These Regulations shall come into effect immediately.
   Sd./xxxxxxxxxx
   (Kyaw Kyaw Maung)
   Governor

Central Bank of Myanmar
Weekly Liquidity Statement (MMK) (000s) A. B. C. D. E F.
All currencies beside Kyat (B,C,D,E) must be converted to Kyat using CBM official exchange rate. Kyat USD Euro SGD All Other Currency Total
I. Liquid Assets:

1. Cash on Hand
2. Current Accounts with CBM
3. Other Claims on CBM
4. Demand Deposits with Banks - Domestic
5. Demand Deposits with Banks – foreign banks with
   acceptable credit ratings.
6. Time Deposits with Banks
7. Loans to Banks
8. Loans to other Financial Institutions
9. Treasury Bills
10. Treasury Bonds having a remaining maturity of one
    year or less
11. Foreign Sovereign Securities issued by countries
    with acceptable credit rating, and having a remaining maturity of one year or less
12. Discounted Bills having a maturity of three months
    or less
13. Debit note receivables
14. Inward Remittances
    II. Gross Liquid Assets (Sum of items I.1 through
    I.14)
    III. Less Borrowings collateralized by items I.1- I.14
    IV. Net Liquid Assets (Item II less Item III)
    V. Volatile Liabilities
15. Demand Deposits of banks
16. Time Deposits of banks having a maturity of one year
    or less
17. Other Demand Deposits
18. Savings Deposits
19. Other Time Deposits having a maturity of one year or
    less
20. Borrowing from Central Bank.
21. Short Term Borrowings not collateralized by items I.1
    through I.14
22. Outward Remittances
23. Debit Notes Payable
24. Accrued interest Payable on Deposits
25. Off Balance sheet items:
    a. Unfunded portion of approved lines of credit b. Irrevocable Letters of Credit due to be funded within one year
    VI. Volatile Liabilities: (Sum of Items V.1 through
    V.11.b)
    VII. Liquidity Ratio: Net Liquid Assets expressed
    as a percentage of Volatile Liabilities = IV/VI Attachment