Yangon – The government will finalize the selection process for foreign banks to operate in Myanmar in September, Vice Governor at the Central Bank of Myanmar, Dr. Sett Aung said at the Assembly of the Union on June 25th.
Foreign banks will be given different options to operate in Myanmar—establishing a joint venture with a local bank, starting a company to create a new bank, or opening a branch in the country, Dr. Sett Aung explained.
The government plans to give permission to five to ten foreign banks in the initial stage.
In addition to the Ministry of Finance and Revenue, the Union Attorney General’s Office, and the Central Bank, foreign organizations such as a German consultant company and the IMF will be involved in the selection process.
The Myanmar government plans to oversee these foreign banks directly through the Central Bank of Myanmar and its counterparts in the respective countries.
Foreign banks that want to open branches in Myanmar could apply for registrations since the last week of May.
Although the entry of foreign banks would not hurt the local banks, bankers are concerned that these foreign banks will take away their skilled employees with better salaries.
According to the statistics from the Central Bank, there are a total of 35 banks that have opened representative offices in Myanmar.