Myanmar on Wednesday granted nine foreign banks limited operating licences, as it attempts to attract investment into an economy emerging from decades of military rule and international isolation.
The nine banks, all from Asia with three from Japan, will be allowed to set up one branch each to provide restricted services, including granting loans to foreign companies.
The banks will be able to lend to local companies in cooperation with local institutions, the Central Bank of Myanmar said.
Central Bank deputy chairman Set Aung laid out the limitations on the foreign banks earlier this year.
“Retail banking for foreign banks will not be allowed, that’s why local banks do not need to worry as they enter the local banking market,” he said in July.
Leading local banks have already signed agreements with foreign banks to cooperate in areas like retail banking, said Than Lwin, vice chairman of Myanmar’s largest private bank, KBZ.
The licences were awarded to the Bank of Tokyo-Mitsubishi UFJ Ltd, Sumitomo Mitsui Banking Corp, Mizuho Bank Ltd, Australia & New Zealand Banking Ltd, Thailand’s Bangkok Bank Public Co, Singapore’s United Oversea Bank Ltd, Oversea-Chinese Banking Corporation, Industial & Commercial Bank of China, and Malayan Bank Berhad (Maybank) of Malaysia.
Currently there are 43 foreign banks represented in Myanmar, but they mainly act as liaison for their home country’s investors and rarely carry out banking transactions.
GNA
