Myanmar grants first licences to foreign banks in decades
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YANGON (AFP) - Myanmar's central bank on Wednesday announced it had granted "preliminary approval" for nine foreign lenders to operate in the country for the first time in decades, the latest tentative opening of the long-isolated economy.
The nine overseas banks -- all from the Asia-Pacific region -- include Australia and New Zealand Banking Group (ANZ), banking giant Industrial and Commercial Bank of China (ICBC), and Japan's Bank of Tokyo-Mitsubishi UFJ.
A statement from the central bank said a licencing committee "has decided to grant preliminary approval to prepare for commencement of banking operations in Myanmar to nine Foreign Banks".
It added that it anticipated the banks' "continuous involvement in the financial sector and economic development" in the country.
Myanmar's quasi-civilian government, which replaced a military regime in 2011, is trying to modernise the country's creaking banking system and boost capital flows to local businesses after decades of economically-ruinous junta rule.
Authorities have implemented sweeping political and economic changes that have seen most international sanctions lifted and created a surge of interest from foreign businesses eager to stake a claim in the new frontier market.
Three of the banks given licences were Japanese, with Sumitomo Mitsui Banking Corporation (SMBC) and Mizuho Bank also granted permission to operate.
Other lenders given approval for licences on Wednesday were Thailand's Bangkok Bank, Malayan Banking Berhad (Maybank) and Singapore's Oversea-Chinese Banking Corporation (OCBC) and United Overseas Bank (UOB).
