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

Published 10/02/2016, 05:41 pm
Updated 10/02/2016, 05:50 pm
© Reuters.  Myanmar's 2nd round of bank licences attracts 13 foreign lenders - central bank

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 .

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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)

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