VietNamNet Bridge – The Central Bank of Myanmar has announced the names of nine foreign banks that were licensed in the first phase in this country, without any representatives of Vietnam.

Among the selected banks are the three largest Japanese banks - Mitsubishi, Sumitomo Mitsui, Mizuho; Industrial and Commercial Bank of China (ICBC); ANZ Bank (Australia); Oversea-Chinese Banking Corp and United Overseas of Singapore; Bangkok Bank (Thailand) and Malaysia's largest bank - Malayan Banking.

The only representative of Vietnam - Bank for Investment and Development of Vietnam (BIDV) – was not on the final list. In July, BIDV was selected in the top 25 for further consideration, of the 30 banks applying for a business license in Myanmar.

The competition for the first licences among foreign banks in Myanmar was very fierce. Along with BID, some big names like DBS Bank - Singapore's largest bank in asset values, Kookmin Bank - the bank with largest capital in South Korea, Maybank - Malaysia's largest bank and the oldest Thai bank - Siam Commercial Bank were not selected.

This is the first time in decades foreign banks are allowed to do business in Myanmar. However, the selected banks will be allowed to open one branch and give loans to foreign companies in foreign currency. If they want to loan domestic firms, they will have to partner with a local bank.

The license will have an initial term of 12 months. The requested minimum capital is $75 million.

Before the economic reforms in 2011, the banking sector in Myanmar was nationalized for several decades and the private sector was allowed to involve in this field from the 90s. This country currently has four state-owned banks, 22 private banks and 42 representative offices of foreign banks.

Quy Nga