BUDGETARY CONTROL SYSTEM OF MYANMAR PRIVATE COMMERCIAL BANKS: CASE STUDY OF MYANMAR ORIENTAL BANK LIMITED & TUN FOUNDATION BANK

Abstract

Developing a budget is a critical step in planning and controlling of any economic activity. Private commercial banks should create budgets on at least an annual basis, so that they can carefully outline the expected needs of each department in the bank. Using an annual budget process also limits the amount of spending and managing capital resources. This research will be supported towards providing answers to the following questions: How are budgets prepared and implemented in Myanmar commercial banks? What are the forms of budgetary control procedures observed in Myanmar commercial banks? This study focuses on how to design the budgetary control process, which committee and department are mainly responsible for budgetary control process and how to establish control in selected commercial banks and tries to find out the requirement of current budgetary control process and design by comparing with theoretical budgetary control system. This research also supports to get more information about budgetary control system in Myanmar commercial banks and support to consider how to improve budgetary control system in Myanmar commercial banks. This study does not much emphasis on the employee satisfaction and effectiveness of budgetary control system.

The study adopts qualitative method which is done on both the primary data and secondary data. Primary data are collected from interviews with budgeting department and management level interview approach to achieve the research objectives. Secondary data conveys various and relevant textbooks, reference books and internet websites and reports of selected commercial banks.