Foreign banks will bring positive impacts: CBM’s vice chair

Local banks have nothing to fear from foreign banks operating in the country, according to the chairperson for the Central Bank of Myanmar.

Sett Aung, the vice chairman for the CBM, gave assurances that foreign banks will be operating within limitations and would not jeopardize any business of the local banks.

“There is nothing to be confirmed because it is in initiated status. It is in dialogue. It couldn’t be said which banks [will be permitted to operate] or when they will be allowed to run,” Sett Aung said.

Thein Tun, the chairman for Myanmar Bank Association, explained that local banks fear they cannot compete with foreign banks when it comes to investment capital, because even the total sum of all local banks’ capital would be less than just one foreign bank.

Despite those concerns, if foreign banks are allowed to operate in Myanmar, CM officials say there will be positive impacts, such as having the benefit of low interest rates, easy access to financing for enterprises and the development of the country’s burgeoning financial sector.

The CBM said that three categories will be permitted for foreign banks if they are to do business in the country:  operating a rep office, cooperation with local banks and running a branch office.

Source : Eleven Myanmar