Central Bank of Myanmar issues four banking licences to foreign banks
Central Bank of Myanmar issues four banking licences to foreign banks
The Central Bank of Myanmar (CBM) has granted four new licences to foreign lenders following a second tender round aimed at increasing foreign participation in Myanmar’s banking sector. The banks to be licenced are The Bank for Investment and Development of Vietnam Ltd, E.SUN Commercial Bank Ltd from Taiwan, South Korea’s Shinhan Bank Ltd and the State Bank of India. The four banks have been issued with preliminary approval lasting twelve months. During this preliminary twelve-month period the four banks will be required to fulfil certain requirements. The four banks must ensure functional banking operations from day one of their branch opening, and comply with requirements laid down by the CBM. Shinhan Bank Ltd, has entered into an agreement with local lender CB Bank Ltd in respect of corporate banking services and the provision of financing for foreign investors. E.SUN Commercial Bank Ltd is the first Taiwanese bank to be issued with a licence. The Taiwanese banks Cathay United Bank Ltd and the First Commercial Bank Ltd were shortlisted, but ultimately unsuccessful, in the first international bidding round held in 2014. Each of the successful banks will be expected to provide US$75 million in initial capital. Read more