Jun 30, 2014

Foreign banks to be given licences in September

At least five to ten foreign banks will be given licence to operate locally in September, according to Sat Aung, vice-governor of Myanmar Central Bank.

The foreign banks, yet to be chosen, will be allowed to operate locally by either establishing a bank branch in Myanmar, forming a new company under the foreign bank’s name, or under a joint-venture system.

“Our method of selection will allow foreign banks to operate a company in Myanmar. By this system, the banks must bring foreign capital from their country and cannot leave Myanmar easily during an economic depression. Moreover, they will be under the supervision of the Central Bank,” said Sat Aung.

The board for selecting foreign banks is composed of the Ministry of Finance, the Central Bank of Myanmar, the Attorney-General’s Office, a German advisory team, the International Monetary Fund and experts from the World Bank.

The exact number of the foreign banks is still uncertain but at least five to ten banks will be selected by September this year. At present, there are more than 20 local private banks, some of who have voiced concern that the entry of foreign banks will create unfair competition.

Source: Eleven Weekly Media