“Bhesh Raj Khatiwada, CEO, Myanmar Citizens Bank Limited, Myanmar”

Bhesharaj Khatiwada is a Nepali Banker. Currently, he is serving as the Chief Executive Officer (CEO) of Myanmar Citizens Bank. Prior to this, Govind Gurung was the CEO of Myanmar Citizens Bank. Before joining the banking sector in Myanmar, Khatiwada worked in various positions at Nabil Bank, Prabhu Bank, and Civil Bank. He started his banking career at Nabil Bank and is an example of Nepali bankers succeeding in foreign banks. He has shared his insights on the current economic outlook in Nepal, the differences between the banking sectors in Myanmar and Nepal, and various other topics related to banking in an interview with banking news.

With 29 years of experience in the banking sector, including 2 years in Myanmar, Khatiwada discusses how his experience in Myanmar has been. According to him, there are significant differences between the banking sectors in Myanmar and Nepal. In Myanmar, the appointment of employees working in top management of banks is primarily overseen by the Central Bank. Initially, the bank’s board of directors reviews the bank’s executive committee, and after approval from the Central Bank, the recruitment process is completed. In contrast, in Nepal, information about appointments in the Central Bank is informally shared. Currently, Myanmar has 27 commercial banks. While core banking functions may be similar, the banking sector in Nepal is considered slightly better than that of Myanmar. Even though banking in Nepal and Myanmar sees 50% similarities, the overall competition in the Nepali banking sector is perceived to be healthier compared to Myanmar. Khatiwada concludes by expressing his positive view on the competition within the Nepali banking sector.

What are the differences in the banking sectors of Nepal and Myanmar?

According to the location, banking products differ, and customer behaviors vary. Education, health, and economy are much better in Nepal compared to Myanmar. The products available there are also considered better than those in Nepal. When comparing here and there, there are some positive aspects as well as some negative aspects in both places. Working in Myanmar feels a bit more independent compared to Nepal. Even when sitting on the board, there is a chance to showcase one’s capabilities. I have experienced a similar level of independence in Nepal.

In terms of human resources, what can Nepal learn from Myanmar’s workforce?

Nepalese may not find as many things to learn from Myanmar as they may think. However, there are some products that Nepali banking can learn from, such as bancassurance. Banks there have negotiated agreements with insurance companies to benefit from their good earnings. Although only one insurance company may have a good deal, insurance companies still have to provide a certain percentage commission to banks. Additionally, if banks bring in revenue from multiple sources, it becomes a lucrative income stream for them. We have implemented such practices here, considering them a successful model.

In the context of Bancassurance, what can regulatory bodies in Nepal learn from Myanmar?

If a bank identifies a good insurance company and recognizes the risks associated with its products, what risks can arise? Determining this is crucial when working. For example, insurance companies that seek to bancassurance can manage risks such as whether they can handle risk management in the future. What problems might arise in the future? Addressing such issues can help promote the product more effectively in Nepal as well. However, if the commission is the only gain, it may not be a good responsibility for the same company.

What has increased more in the interest rates given by Nepali banks compared to the banks in Myanmar?

If you look at the size of loans, there is much more in Nepal than in Myanmar. I, as a Myanmar Citizen Bank employee, have published information about how much interest we will give on fixed deposits. However, other banks there are not obligated to publish such transparent information. If you look at the current situation, the interest rates in banks here seem better than those in Myanmar.

For someone like you and other Nepali bankers working abroad, what kind of patience is required to work in foreign countries?

Initially, one must focus on self-improvement. Banks encounter new challenges every day. New things come up in technology, and new products can emerge based on the accounts. Keeping updated and innovative in such matters is crucial. This is the most important thing. However, not everything can be produced on its own. It is also essential to observe how other banks have developed. In leadership roles, the organization needs to decide in which direction to lead. What strategies will be implemented, and how will employees be managed? These topics are of special importance.

When there is a debate about whether Nepal can become like Sri Lanka in terms of migration, what can be said about it?

What is happening in Nepal? Nepalese are going abroad for employment, and the economy is slowing down. If Nepal cannot reach Sri Lanka’s current situation, it does not mean it will never happen. This kind of thinking is common. Going abroad for education or employment is not only happening in Nepal but also globally. However, the youth need to be encouraged to invest in the country. This thought must be considered by the government. But again, just thinking about it does not solve the problem quickly. Even if a new government comes, the situation will not change immediately. When bringing the people back to their country, it is natural for them to go where there is employment and opportunity. It is a matter of how well we can utilize them for economic and social development. We need to consider this, and it is essential to move forward positively. Our current situation is not as dire as in Gaza or Ukraine. We need more time to recover in terms of economic trajectory, but a positive approach is necessary. Sending a negative message that everyone is going to be ruined is not the solution.

In Sri Lanka, based on tourism-dependent economy, after the start of COVID, there has been a problem in repaying foreign loans, and now, with the new government, the situation has improved after repaying the loans. Sometimes it is said that Nepal should also become like Sri Lanka. What can be said about this?

Is Nepal experiencing similar circumstances? Nepalese are migrating abroad in large numbers. The economy is slowing down. It seems that Nepal will not reach the situation of Sri Lanka soon. This is not the case. In reality, the situation in Sri Lanka is much better than ours. Sri Lanka’s total Gross Domestic Product (GDP) is about 75 billion US dollars, which is equivalent to around 40/42 billion US dollars for us. Even with a simple calculation, Nepal is more than three times behind Sri Lanka. Even in terms of per capita income, we need to earn around 1,300 dollars, while they need to reach 3,300 dollars. In this calculation, although we may say that we are doing well, it will still take about 20 years to become like Sri Lanka.

What advice would you give to the youth who are working in the banking sector and aspiring to build a future?

The banking sector has changed significantly since we entered, and now the situation is different. What’s different is that there are opportunities abroad as well. In the past, the trend was not to work in foreign banks when working in Nepal. However, now it is essential to rise above the mindset of just staying in the country. Working in a bank is not just about going to the office at 10 and returning home at 5; it requires a mindset that goes beyond this. Whether I go to work at 10 or 5, it is crucial to rise above such a mindset. It is not enough to have just worked and learned; you won’t reach far if you only do what you have been taught or what you have learned. Banking is a dynamic field. How can you learn new things? What new innovations can you bring? What new types of products can you create? Thinking about these aspects and moving forward is crucial. It is not about thinking at a high level that new ideas and thoughts will always come from there; even young people can bring more new plans. Therefore, searching for new things, seeking knowledge, and exploring new ideas like successful bankers can lead to success.

In the next 10 to 15 years, do you think we will see many Nepalese leading foreign banks like you?

This is a matter of the future. There are many possibilities. If we can go abroad and show excellent work, then certainly more young Nepali colleagues could lead foreign banks in the future.