A few years ago, Myanmar did not have a single automated teller machine (ATM) to its name. Now, the Southeast Asian nation, formerly known as Burma, is experiencing a banking boom. 120,000 new jobs are forecast in the coming decade, the sector's asset base is expected to expand eightfold, and loans are predicted to skyrocket to more than USD 164 billion at a compound growth rate of 29%.

With so much change underfoot, collateral pain is not unlikely. If the banking sector is not allowed to thrive, the fast-paced development anticipated could falter. Roland Berger has identified a series of key reforms, vital to the future success of Myanmar's banking sector:

• Urgent introduction of an active interbank market, enabling banks to lend to one another, instead of having to go to the Central Bank for funds.
• Fostering of credit access by banks and the regulator, through a range of regulatory adjustments and changes in lending practices
• Re-building of trust in the banking system, after severe crises and bank runs eroded it in the past.
• Reform of state-owned banks. Myanmar's largest state owned banks currently operate as commercial banks without the required capacities to do so and do not abide by the same set of rules and regulations.
• Securing independence for the Central Bank by building up its capabilities and capacities.

Myanmar's banking system is at a crucial turning point. After years of isolation and limited services, the sector is set to gain a new lease of life. While Myanmar's banking sector remains one of the most underdeveloped in the world – the potential for growth is huge.