More foreign banks getting licences next year
The Central Bank of Myanmar announced on 14 December that it plans to issue a second round of foreign bank licences early in 2016. Nine foreign banks were issued with licences in the first round and they were required to put up a minimum of US$75 million in paid-in capital to set up a branch. US$ 40 million was deposited with the Central Bank. According to a Central Bank notice, foreign banks that have representative offices in Myanmar or those in the process of opening one can apply. It is learned that the licence will be for onshore wholesale banking. At present international banks are permitted only to lend to foreign businesses and domestic banks and not allowed to engage in retail operations.
It is also learned that paid-in capital for the second round would be $75 million.
In connection with the announcement, the Chief Executive at the United Bank of India’s Yangon office is reported to have commented ” …there is huge potential hare and a lot of unexplored markets”.
EOI for fourth telecommunication operator
The government of Myanmar has invited international companies to submit expressions of interest (EOI) to set up a joint venture with a local consortium in order to become a minority stake holder in the fourth telecom operator of the country. However, Norway’s Telenor and Qatar’s Ooredoo, two foreign operators which were granted licences in 2013 own their local subsidiaries. Myanmar’s third telecom operator is the Myanmar Posts and Telecommunications (MPT). At present Telenor, Ooredoo and MPT have 11.8, million, 4.8 million and 16 million subscribers respectively.
The initial duration of the fourth licence will be 15 years and can be renewed for at least 10 years.
The secretary of the tender selection committee said that the licence will be granted next year, subject to approval, once the joint venture has been formed.
16 December 2015