On 7th November 2019, the Central Bank of Myanmar (“CBM”), exercising the power conferred under section 184 of Financial Institution law 2016, issued the announcement for the third round of Foreign Bank Licensing tender to further liberalize the banking sector in Myanmar.
According to this announcement, it has been indicated that two types of licenses will be issued in the upcoming round, i.e. either as a Branch or a Subsidiary.
The minimum capital requirement for branch license shall be USD 75 million for its operation, with USD 40 million shall be locked-up for two years with the CBM. Whereas, the minimum capital requirement for subsidiary license shall be USD 100 million for operations.
Furthermore, onshore retail banking activities will also be permitted under the subsidiary license starting from 1st January 2021. Conversion of existing foreign bank branch into subsidiary will be allowed starting from June 2020.
From the 1st of January 2020, foreign bank ownership into a Myanmar domestic bank exceeding 35% of the capital of the domestic bank may also be permitted on case by case basis.
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 (firstname.lastname@example.org), Mr Priyank Srivastava (email@example.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 & 2019).