On 27th September 2016, the Foreign Bank Licensing Committee (“FBLC”) under the Central Bank of Myanmar (“CBM”) granted approval for two foreign banks, the State Bank of India and E Sun Commercial Bank Ltd. of Taiwan for commencing operations from 3rd October 2016.
Foreign Banks with Current Licenses
As of October 2016, 13 foreign banks have been granted approval to open branches in Myanmar as follows:-
Scope of the License
The exact scope of the banking activities under each granted foreign bank license may vary from bank to bank at the discretion of the CBM and according to the terms of the initial proposal of each applicant bank. Generally, the scope of the license could be limited.
Currently, the branch office of each licensed foreign bank is allowed to provide loans in foreign currencies to foreign companies but is prohibited from engaging in retail banking in the local market or lending to local companies.