Foreign banks’ branches to help develop the country’s economy

Foreign banks’ branches to help develop the country’s economy
Zaw Min Win, President of Union of Myanmar Federation of Chambers of Commerce and Industry, gives a speech at the 27th annual general meeting.
Zaw Min Win, President of Union of Myanmar Federation of Chambers of Commerce and Industry, gives a speech at the 27th annual general meeting.
Published 19 November 2018
Zeyar Nyein

Foreign banks providing more services will help develop the country’s economy as local banks are unable to grant loans to large-scale investments, said Zaw Min Win, President of Union of Myanmar Federation of Chambers of Commerce and Industry, at the 27th annual general meeting at the UMFCCI (headquarters) in Yangon on November 18.

“We welcome foreign banks. Local banks lack sufficient capital to grant loans. Foreign banks will do the loan scheme systematically. It will materialize step by step. Now corporate banking has started. A plan is under way for trade financing. Thanks to it, our country will see the economic growth. I have heard a news that the central bank is making necessary preparations for the systematic operations,” he added.

On November 8, the central bank granted permission for foreign bank branches to provide wholesale banking services to foreign corporations, local and foreign financial institutions as well as local corporations in partnership with domestic financial institutions.

In order to promote local corporate’s access to finance, the CBM issued a directive to permit foreign banks’ branches to provide banking services (ie. any financing and other banking services) to local corporate.

Since 2015, the Central Bank of Myanmar started allowing foreign banks to open their branches. Now the number of foreign bank branches has reached 13. The extant foreign bank branches are: MUFG Bank Ltd, Oversea-Chinese Banking Corporation Ltd, Sumitomo Mitsui Banking Corporation, United Overseas Bank Ltd, Bangkok Bank Public Company Ltd, Industrial and Commercial Bank of China, Malayan Banking Berhad (May Bank), Mizuho Bank Ltd, Australia and New Zealand Banking Group Ltd, the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), Shinhan Bank, E Sum Commercial Bank Ltd and State Bank of India.

The vice-governor of the central bank said at a press conference at central bank (Yangon branch) on November 14, the central bank planned to grant the permit to foreign banks’ branches mainly in Yangon.