Myanmar Agricultural Development Bank : Initial Assessment and Restructuring Options

World Bank

Bangkok

关键词: ACCESS TO FINANCE;    ACCOUNTING;    ACCOUNTING STANDARDS;    ADMINISTRATIVE BARRIERS;    ADMINISTRATIVE CONTROLS;   

RP-ID  :  86630

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Myanmar is an agricultural country. Itis estimated that the agriculture sector represents between35 to 40 percent of gross domestic product (GDP) and that upto 70 percent of the labor force (of 32.5 million) isdirectly or indirectly engaged in agricultural activities ordepend on agriculture for their income. Givenagriculture's important contribution to the economy,the modernization of the agriculture sector is a toppriority in the economic and social development agenda ofthe Government of Myanmar. Among the government institutionssupporting the agriculture sector, the Myanmar AgricultureDevelopment Bank (MADB) plays an important role. MADB wasestablished in June 1953 by the Government of Myanmar tosupport the development of agriculture, livestock, and ruralenterprises in Myanmar. MADB is currently the largestfinancial institution serving the rural areas and financingagriculture activities. At the end of 2012, MADB served 1.87million customers, mostly farmers, and had a network of 206branches (which accounted for 23 percent of all banks'branches in Myanmar). Since its creation, MADB has played animportant economic and social role by providing loans to alarge segment of low-income households engaged inagricultural activities. Historically, several agriculturebanks around the world have failed due to poor corporategovernance, inadequate risk management capability,unsustainable business models, capture by their ownclientele, or undue political interference in their lendingdecisions. Therefore, authorities should ensure that MADB istransformed into a sound, well-administered, and financiallysustainable institution, able to withstand undue politicalinterference and able to operate with the highest standardsof corporate governance and transparency. In this context,the report is organized as follows: chapter one givesdiagnostic of MADB; chapter two presents options for thetransformation of MADB; chapter three presents lessons frominternational experience; and chapter four gives conclusions.