The Central Bank of Myanmar (CBM) on 08 November 2018 issued Directive no. 6/2018 (the “Directive”) in respect of allowing foreign banks (branches) to extend their banking services to local corporate business in Myanmar.  Currently there are thirteen (13) foreign bank branches that have been licensed to carry out banking services in Myanmar. Erstwhile, these foreign banks were not permitted to cater to local corporates, however this limitation has been removed by CBM. The intention as cited is towards encouraging more foreign currency to enter the Myanmar market. Foreign Banks, by virtue of the Directive, shall be permitted to offer export financing and wholesale banking services to both foreign as well as local corporates in Myanmar. This move is being welcomed by foreign banks and is envisaged as an opportunity to promote growth of the banking and finance sector of Myanmar.

Through our office in Yangon, Duane Morris & Selvam advises corporations on investment, business and regulatory processes in Myanmar. For further information, please contact Mr Krishna Ramachandra (kramachandra@duanemorrisselvam.com), Ms Babita Ambekar (bambekar@duanemorrisselvam.com), Mr Priyank Srivastava (psrivastava@duanemorrisselvam.com), or Mr CN Beilo (CBLo@selvamandpartners.com) or visit www.duanemorrisselvam.com. Duane Morris & Selvam is recognized as a leading law firm for Myanmar related Corporate, M&A and Projects (including Energy) work – The Legal 500 (2017 & 2018).