Central Bank of Myanmar (CBM) will allow foreign fully owned banks to operate in Myanmar by the end of 2020

Central Bank of Myanmar will allow fully owned foreign banks by the end of 2020.

“We will allow foreign bank as a subsidiary if they want to operate here as a fully owned foreign bank. We have issued a statement on this and will announce the details of the terms and conditions for them. In international practices, a subsidiary can operate in the same way local banks do,’’ U Bo Bo Nge, Vice President of Myanmar, said.

Central Bank is considering allowing subsidiaries based in the country, but directly managed by the mother bank instead of allowing foreign bank branches.

Last month, CBM issued an order in late January promising that it will allow up to 35 percent foreign equity investments in local banks by foreign banks and other financial institutions.

Now, they are working on rules and regulations for allowing foreign banks, they are not ready to disclose how many banks will be allowed.

“This will offer people more options to save and deposit,’’ he said.

Central Bank recently started to open up the banking sector to foreign banks allowing nine foreign bank branches in 2014. Now there are 13 foreign bank branches in Myanmar. They are also giving more space to foreign banks in providing financial services.

(Myanmar Business Today: https://www.mmbiztoday.com/articles/cbm-allow-foreign-owned-banks-end-2020 )

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