Pursuant to the Announcement, foreign banks will be able to apply either for a branch or for a subsidiary license, as summarized below:
|Branch License||Subsidiary License|
|Products and services||Wholesale banking||Wholesale banking at the start of operations and later on – onshore retail banking activities to be permitted from 1 January 2021|
|Minimum paid-in capital||USD 75 million (with USD 40 million locked up for 2 years with CBM)||USD 100 million|
|Place of business||Can establish only one place of business||Can establish up to 10 places of business as branches or offsite ATMs|
Conversion of existing foreign bank branch into subsidiary
Pursuant to the Announcement, this should be allowed from June 2020. Three full years of activities as a branch in Myanmar are required as a pre-condition.
Foreign ownership in Myanmar domestic banks
The announcement further provides that from 1 January 2020 and on a case to case basis, foreign bank ownership into Myanmar domestic banks exceeding 35% may be permitted.
As follows from the Announcement, requests for Expressions of Interest (EOI) will be shared by the Central Bank with eligible banks.