Myanmar's 2nd round of bank licences attracts 13 foreign lenders - central bank

Taiwan Business Bank

10/02/2016 06:41

By Timothy Mclaughlin 
    YANGON, Feb 10 (Reuters) - A total of 13 banks, mostly 
Taiwanese, answered a call from Myanmar's central bank for 
expressions of interest in a second round of foreign bank 
licencing aimed at further liberalising a sector that was 
previously off-limits to international players.   
    Some eight of the banks listed in an official central bank 
statement on Feb. 8 as taking part in the second round are from 
Taiwan. Other countries represented are Vietnam, South Korea, 
India and Mauritius.  
    The second round was opened late last year with hopes of 
bolstering foreign investment into the country, though the 
central bank has not said how many licenses will be granted. 
Banking services for Myanmar's 51 million people are still 
severely limited in industry is dominated by financial 
institutions with ties to the former military regime. 
    A first round in 2014 saw nine banks from Australia, Japan, 
Malaysia, China, Singapore, and Thailand, win licences to 
operate in Myanmar, in a limited capacity. Banks from countries 
that won licences in 2014 were barred from entering the second 
round.  
    According to the central bank, Taiwan's Cathay United Bank 
Co  CTHFNU.UL , E. SUN Commercial Bank, Taiwan Business Bank 
 2834.TW  and Taiwan Cooperative Bank  TWCOFB.UL  all applied. 
The other Taiwanese contenders were Taiwan Shin Kong Commercial 
Bank Co  SKFHCB.UL , Mega International Commercial Bank Co 
 MEGAFA.UL , First Commercial Bank  FIRFNC.UL  and CTBC Bank Co  
 CTRUSC.UL . 
    South Korea's Shinhan Bank  SHINBC.UL  and KB Kookmin Bank 
 KOOKM.UL  were also on the list, as were the State Bank of 
India  SBINY.UL  and the State Bank of Mauritius and the Bank 
for Investment and Development of Vietnam  BID.HM .  
    Among the winners of licences in 2014 were ANZ Banking Group 
Ltd  ANZ.AX , Australia's fourth-largest lender by assets, 
Thailand's Bangkok Bank PCL  BBL.BK  and Japan's three biggest 
lenders - Mitsubishi UFJ Financial Group Inc  8306.T , Sumitomo 
Mitsui Financial Group Inc  8316.T  and Mizuho Financial Group 
Inc  8411.T. .  
    All have started operations, though services they can offer 
are limited.  
    The winners of preliminary licence approval will be 
announced ay the end of the first quarter of 2016, according to 
the central bank. 
 
 (Editing by Kenneth Maxwell) 
 ((Timothy.Mclaughlin@thomsonreuters.com; +95 9421152114)) 
 
Keywords: MYANMAR BANKING/