Myanmar Awards First Licenses to Foreign Banks as Part of Reform

Myanmar awarded licenses Wednesday to the first foreign banks allowed to operate in the country. Lenders from Japan, China and Australia were among the nine banks to receive licenses in a reform implemented after Myanmar emerged from dictatorship. Those to receive licenses included Bank of Tokyo-Mitsubishi UFJ, Industrial and Commercial Bank of China and Australia and New Zealand Banking Group. Others were Sumitomo Mitsui Banking Corp., Mizuho Bank, Thailand's Bangkok Bank, Singapore's Oversea-Chinese Banking Corp. and United Overseas Bank and Malaysia's Malayan Banking Bhd. Each bank will be allowed to open one branch but cannot conduct retail banking. They can only lend to foreign investors in foreign currencies, not the local currency, unless they partner with a local bank. This is mostly an effort to protect the underdeveloped domestic industry. Licenses went out to the 25 banks that already have representative offices in Myanmar. Within those there were no U.S. or European lenders in the group announced by the Central Bank.