02-10-2014, 09:41 AM
Good morning everyone.
Congrats to OCBC too.
<vested-oldpot><not a call to buy or sell>
DJ Myanmar Awards Foreign Bank Licenses -- Update
01 Oct 2014 15:48
DJ Myanmar Awards Foreign Bank Licenses -- Update
By Shibani Mahtani, Enda Curran and Atsuko Fukase
Australia & New Zealand Banking Ltd., three Japanese banks and five others on Wednesday won coveted licenses to operate in Myanmar after decades in which foreign lenders were frozen out of the country.
ANZ, along with Japan's biggest lenders--Bank of Tokyo-Mitsubishi UFJ Ltd., Sumitomo Mitsui Banking Corp. and Mizuho Bank Ltd.--were among 25 applicants vying for a license to operate in Myanmar.
Other license winners included Thailand's Bangkok Bank Public Co., Industrial & Commercial Bank of China Ltd., Malayan Bank Bhd., and two Singapore banks-- United Overseas Bank Ltd. and Oversea-Chinese Banking Corp.
The long-awaited announcement by Myanmar's central bank allows overseas lenders to start doing business in the once-isolated country, part of a sweeping overhaul under Myanmar's new nominally civilian government. Banks now have 12 months to prepare for the opening of their branches in the country.
For ANZ, winning the license is part of the bank's strategy to grow its Asian business and the bank plans to service big multinational companies who operate in the country.
"If you think about our strengths in natural resources, energy and infrastructure, each of these sectors in Myanmar have significant opportunities," said Andrew Géczy, ANZ's chief executive for international and institutional banking.
Set Aung, deputy governor of Myanmar's central bank said earlier that license recipients would be limited to banking for foreign corporations and foreign-exchange services.
Foreign banks will be limited to one branch each, won't be permitted to operate a retail-banking business and will be allowed to lend only in foreign currency, and not in the kyat, Myanmar's currency, unless they partner with a local bank.
Even with the initial restrictions, the move has been praised by analysts as a step toward liberalizing Myanmar's rigid financial sector. The bank's decision is expected to greatly improve access to capital in Myanmar, one of the key hurdles for foreign companies investing there.
"Taking into consideration where the banking industry of the country stands right now, even the current partial opening of the sector to international banks is a major development," said Sardor Koshnazarov, managing director at Silk Road Finance, a frontier-market-focused investment firm.
Many of Myanmar's local banks have opposed the granting licenses, worrying that allowing foreign banks to operate in the country would erode their market share.
"Foreign banks are giants, but we are still very small," said Sein Maung, chairman of Myanmar First Private Bank and vice chairman of the Myanmar Banking Association. "We are not ready to compete with them, not in terms of technology or experience."
Pe Myint, managing director of Myanmar's Co-operative Bank Ltd., said his firm is preparing to upgrade services and has hired consultants to respond to the added competition.
"But we will still face shortage of human resources and skills, because some of our talented staff will move to foreign banks when they start operations," he said.
Congrats to OCBC too.
<vested-oldpot><not a call to buy or sell>
DJ Myanmar Awards Foreign Bank Licenses -- Update
01 Oct 2014 15:48
DJ Myanmar Awards Foreign Bank Licenses -- Update
By Shibani Mahtani, Enda Curran and Atsuko Fukase
Australia & New Zealand Banking Ltd., three Japanese banks and five others on Wednesday won coveted licenses to operate in Myanmar after decades in which foreign lenders were frozen out of the country.
ANZ, along with Japan's biggest lenders--Bank of Tokyo-Mitsubishi UFJ Ltd., Sumitomo Mitsui Banking Corp. and Mizuho Bank Ltd.--were among 25 applicants vying for a license to operate in Myanmar.
Other license winners included Thailand's Bangkok Bank Public Co., Industrial & Commercial Bank of China Ltd., Malayan Bank Bhd., and two Singapore banks-- United Overseas Bank Ltd. and Oversea-Chinese Banking Corp.
The long-awaited announcement by Myanmar's central bank allows overseas lenders to start doing business in the once-isolated country, part of a sweeping overhaul under Myanmar's new nominally civilian government. Banks now have 12 months to prepare for the opening of their branches in the country.
For ANZ, winning the license is part of the bank's strategy to grow its Asian business and the bank plans to service big multinational companies who operate in the country.
"If you think about our strengths in natural resources, energy and infrastructure, each of these sectors in Myanmar have significant opportunities," said Andrew Géczy, ANZ's chief executive for international and institutional banking.
Set Aung, deputy governor of Myanmar's central bank said earlier that license recipients would be limited to banking for foreign corporations and foreign-exchange services.
Foreign banks will be limited to one branch each, won't be permitted to operate a retail-banking business and will be allowed to lend only in foreign currency, and not in the kyat, Myanmar's currency, unless they partner with a local bank.
Even with the initial restrictions, the move has been praised by analysts as a step toward liberalizing Myanmar's rigid financial sector. The bank's decision is expected to greatly improve access to capital in Myanmar, one of the key hurdles for foreign companies investing there.
"Taking into consideration where the banking industry of the country stands right now, even the current partial opening of the sector to international banks is a major development," said Sardor Koshnazarov, managing director at Silk Road Finance, a frontier-market-focused investment firm.
Many of Myanmar's local banks have opposed the granting licenses, worrying that allowing foreign banks to operate in the country would erode their market share.
"Foreign banks are giants, but we are still very small," said Sein Maung, chairman of Myanmar First Private Bank and vice chairman of the Myanmar Banking Association. "We are not ready to compete with them, not in terms of technology or experience."
Pe Myint, managing director of Myanmar's Co-operative Bank Ltd., said his firm is preparing to upgrade services and has hired consultants to respond to the added competition.
"But we will still face shortage of human resources and skills, because some of our talented staff will move to foreign banks when they start operations," he said.