ANZ secures Myanmar licence

ANZ, three Japanese banks and five others yesterday won coveted licences to operate in Myanmar.

ANZ, three Japanese banks and five others yesterday won coveted licences to operate in Myanmar after decades in which foreign lenders were frozen out of the country.

ANZ, along with Japan’s biggest lenders — Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui and Mizuho Bank — were among 25 applicants vying for a licence to operate in Myanmar.

Other licence winners included Thailand’s Bangkok Bank, Industrial & Commercial Bank of China, Malayan Bank and two Singapore banks — United Overseas Bank and Oversea-Chinese Banking Corp.

The long-awaited announcement by Myanmar’s central bank allows overseas lenders to start doing business in the once-isolated country, part of a sweeping overhaul under Myanmar’s new nominally civilian government. Banks now have 12 months to prepare for the opening of their branches in the country.

ANZ plans to grow its Asian business and the bank intends to service big multinational companies who operate in the country. “If you think about our strengths in natural resources, energy and infrastructure, each of these sectors in Myanmar have significant opportunities,” said Andrew Geczy, ANZ’s chief executive for international and institutional banking.

Set Aung, deputy governor of Myanmar’s central bank, said earlier that licence recipients would be limited to banking for foreign corporations and foreign-exchange services.

Foreign banks will be limited to one branch each, won’t be permitted to operate a ­­
retail-banking business and will be allowed to lend only in
foreign currency, and not in the kyat, Myanmar’s currency, unless they partner with a local bank.

Even with the initial restrictions, the move has been praised by analysts as a step towards liberalising Myanmar’s rigid financial sector.

The bank’s decision is expected to greatly improve access to capital in Myanmar, one of the key hurdles for foreign companies investing there.