This chapter looks into Myanmar’s challenges for developing its financial sector and current reforms being implemented by the government. It begins with a brief description of Myanmar’s financial sector stage of development, followed by an assessment of regulatory deficiencies that have prevented the development of the banking sector. It looks into regulatory asymmetries between private and state-owned financial institutions that prevent greater competition in financial sectors and examines briefly some current institutional framework challenges that discourage the development of financial services in the country. This chapter also outlines the government’s recent reform efforts to modernise Myanmar’s financial sector and expand access to finance, including recent reforms to introduce more competition to the banking sector by allowing the entry of foreign banks. This chapter also briefly covers challenges and reforms being implemented to build Myanmar’s capital market.