AFP, Naypyidaw :
Myanmar’s central bank has said it plans to grant licenses to foreign banks by September as it seeks to boost the flow of money to local businesses in the once tightly controlled economy.
The nation’s reformist regime wants to modernise the country’s antiquated banking sector, which was left in tatters by decades of military rule and economic mismanagement.
Foreign banks hunting new markets have been hungrily eying the nation’s already rapidly growing financial sector.
Speaking to lawmakers in Naypyidaw on Wednesday central bank vice- governor Set Aung said overseas lenders will be issued licenses by September although some restrictions will still apply.
They will not be allowed into the retail banking sector and will have to hold at least $75 million in capital. They will also only be allowed to operate a single branch.
The controls have been considered “for the interests of local bankers, local businessmen,” Set Aung told parliament.
Lawmaker Phyo Min Thein confirmed the September target date for the licenses to be issued, adding the move will “help local banks too”.
According to the Central Bank website 35 foreign banks already run offices in the once-junta ruled nation but so far do not conduct banking operations. They are mainly from the Asia region.
Myanmar’s central bank has said it plans to grant licenses to foreign banks by September as it seeks to boost the flow of money to local businesses in the once tightly controlled economy.
The nation’s reformist regime wants to modernise the country’s antiquated banking sector, which was left in tatters by decades of military rule and economic mismanagement.
Foreign banks hunting new markets have been hungrily eying the nation’s already rapidly growing financial sector.
Speaking to lawmakers in Naypyidaw on Wednesday central bank vice- governor Set Aung said overseas lenders will be issued licenses by September although some restrictions will still apply.
They will not be allowed into the retail banking sector and will have to hold at least $75 million in capital. They will also only be allowed to operate a single branch.
The controls have been considered “for the interests of local bankers, local businessmen,” Set Aung told parliament.
Lawmaker Phyo Min Thein confirmed the September target date for the licenses to be issued, adding the move will “help local banks too”.
According to the Central Bank website 35 foreign banks already run offices in the once-junta ruled nation but so far do not conduct banking operations. They are mainly from the Asia region.
