27 Feb 2019
MYANMAR: Overseas Banks Approved for New Branches and Wider Range of Services
In line with a recent statement by the Central Bank of Myanmar (CBM), all overseas-headquartered banks will be permitted to set up wholly-owned subsidiaries in the country by the end of 2020. Previously, any overseas bank looking to open a Myanmar branch had to make an individual application, with each such request subject to CBM approval, with no such assent having been given since March 2016, when four non-domestic banks were given the go-ahead. This took the total number of overseas banks active in the country to 13.
Under the terms of the new legislation, these new overseas bank branches are expected to be allowed to offer all the banking service currently available from local banks. Previously, the 13 approved overseas bank branches in Myanmar were only allowed to extend credit to businesses, but were barred from offering retail banking services.