Myanmar to grant licences to foreign banks by September


Myanmar’s central bank has said it plans to grant licences to foreign banks by September as it seeks to boost the flow of money to local businesses in the once tightly controlled economy.

The nation’s reformist regime wants to modernise the country’s antiquated banking sector, which was left in tatters by decades of military rule and economic mismanagement.

Foreign banks hunting new markets have been hungrily eying the nation’s already rapidly growing financial sector.

Speaking to lawmakers in Nay Pyi Taw on Wednesday, central bank vice-governor Set Aung said overseas lenders will be issued licences by September although some restrictions will still apply.

They will not be allowed into the retail banking sector and will have to hold at least US$75 million in capital. They will also only be allowed to operate a single branch.

The controls have been considered “for the interests of local bankers, local businessmen,” Set Aung told parliament.

Lawmaker Phyo Min Thein confirmed the September target date for the licences to be issued, adding the move will “help local banks too”.

According to the Central Bank website, 35 foreign banks already run offices in the once-junta ruled nation but so far do not conduct banking operations. They are mainly from the Asia region.

Nationalised by the military regime which came to power in 1962, banking disintegrated with the economy during the bungled implementation of socialist-style policies which were laced with superstition — the kyat currency was at one point issued in denominations of nine, an auspicious number.

That demise was deepened by US financial sanctions, which have been partly lifted in response to sweeping changes since the end of junta rule in 2011.

But Myanmar’s banking system is yet to recover.

It suffered a blow in 2003 when three banks collapsed in a crisis exacerbated by Central Bank policies, such as recalling loans from borrowers.

The International Monetary Fund has praised Myanmar’s economic reforms, including giving autonomy to the central bank and adopting a floating rate for the kyat.

In January, it forecast growth in fiscal 2013-2014 to rise to 7.5 per cent and near 7.8 per cent the following year.





Source : Channel News Asia | June 26, 2014


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Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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