Central Bank raises capital requirement for local banks
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The Central Bank of Myanmar (CBM) has raised the minimum capital requirement for local banks from Ks 10 billion (US$10 million) to Ks 20 billion ($20 million).
“The capital of our bank is near Ks 62 billion. Those banks that failed to meet the central bank’s new limit should increase their capital,” said Phyo Aung, managing director of Ayeyarwady Bank.
There are 22 private banks which operate 900 branches in Myanmar, including Kanbawza Bank, Cooperative Bank, Ayeyarwady Bank, Yoma Bank, Asia Green Development Bank and Myanmar Apex Bank.
Most of the private banks' capital stays above the CBM’s new minimum.
The capital of Kanbawza Bank – the top tax payer and largest bank in Myanmar – is around Ks 130 billion, according to its senior advisor Than Lwin.
Older regulations, such as the need for an additional Ks 700 million capital in order to open a bank branch and the requirements to own land and a building, have been abolished.
Efforts are underway to open a Farmer Bank and Jewellery Bank beside the existing private banks.
Capital requirement for local banks is raised following the permission to nine foreign banks to operate in the country. The foreign banks' minimum capital requirement is US$75 million.
