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OCBC, UOB granted banking licence in Myanmar

SINGAPORE — OCBC Bank and UOB today (Oct 1) received preliminary approval for a foreign bank licence to operate in Myanmar, which will allow it to offer full banking services to foreign companies, joint ventures and domestic banks in one of Asia’s most attractive emerging markets.

SINGAPORE — OCBC Bank and UOB today (Oct 1) received preliminary approval for a foreign bank licence to operate in Myanmar, which will allow it to offer full banking services to foreign companies, joint ventures and domestic banks in one of Asia’s most attractive emerging markets.

The banks now have up to 12 months to fulfill subsequent due diligence before their licences can be finalised and a branch can be formally set up.

The two Singapore banks are among the nine foreign banks that have been granted a banking licence by the Central Bank of Myanmar. Others include the Industrial and Commercial Bank of China, Maybank, Bangkok Bank and Bank of Tokyo-Mitsubishi UFJ, according to an announcement made by the regulator today.

Regional financial institutions have been eyeing the country as the next key growth market in South-east Asia, where increasing trade flows and an emerging middle class are set to drive demand for more banking services.

“Since the opening up of the Myanmar economy in 2011, we have witnessed a steady increase in foreign interest across several key sectors including infrastructure development, commodities and telecommunications,” OCBC’s head of global commercial banking Linus Goh said.

“(The licence) will enable us to contribute to the growth and development of the economy in Myanmar through the financial services that we will offer our corporate and institutional customers keen to participate in the opportunities for trade and investment there,” he said, adding that services provided under the new licence will include cash management, project financing, trade finance and other treasury advisory services.

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