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Roundup: More foreign banks' step-in boosts Myanmar banking sector

Xinhua, March 6, 2016 Adjust font size:

The Central Bank of Myanmar (CBM) has awarded preliminary approval of foreign bank licenses to four more banks from four countries and regions.

The four banks from Vietnam, China's Taiwan, South Korea and India are Bank for Investment and Development of Vietnam (BIDV), E SUN Commercial Bank, Shinhan Bank and State Bank of India respectively.

The granting of the four new foreign banks add to nine others awarded service licenses earlier in October 2014. The 2014 approval of such licenses marked the first in more than five decades.

The preliminary approval for all banks is valid for one year during which they are all required to take necessary measures to ensure functional banking operation from day one of business and will have to comply with the requirements laid down by the CBM.

Upon fulfillment of the requirements, the CBM is to grant them the final licenses to operate in Myanmar.

The prior nine banks are three from Japan, two from Singapore, one each from China, Malaysia, Thailand and Australia-New Zealand.

They are Australia and New Zealand Banking Group Ltd.(ANZ), Bangkok Bank, Japan's Bank of Tokyo Mitshubishi UFJ Ltd (BTMU), Sumitomo Mitsui Banking Corporation (SMBC) and Mizuho, Malayan Banking Berhad (Maybank), Singapore's Overseas Chinese Banking Corporation (OCBC) and the United Overseas Bank (UOB) and the Industrial and Commercial Bank of China (ICBC).

Almost all of them have opened their bank branches in Myanmar for service operation.

Myanmar authorities prescribes that before a bank branch is established in Myanmar, it has to open a representative office first in the country.

The 13 foreign banks, which were awarded service licenses, are among the 43 with representative offices in Myanmar.

The granted international bank branches are allowed to operate wholesale banking and to lend money to foreign investment companies and local banks.

The foreign bank branches are also allowed to lend money to local companies through local banks or to lend a syndicated loan to local companies in cooperation with local banks.

Meanwhile, there are also 25 local private banks and four state-owned banks in the country at present. Endit