Myanmar will not allow more private banks

Cashiers are seen behind piles of kyat banknotes as they count the money in a private bank in Yangon.

MYANMAR - Myanmar will not allow permission for new private banks except for branch offices which are jointly cooperating with the government, according to the Deputy Minister of Finance.

Currently, there are many application forms by local entrepreneurs, including Myanmar Microfinance Bank and Housing Development Bank, to open new private banks.

There were 20 local private banks being opened until the end of May this year, according to a statement by the Central Bank of Myanmar.

"We didn't not grant for the opening of new private banks except the government's joint venture banks," said Deputy Minister of Finance Maung Maung Thein.

The local private banks are Myanmar Citizens Bank, Cooperative Bank, Yadanapon Bank, First Private Bank, Myawaddy Bank, Yangon City Bank, Yoma Bank, Myanmar Oriented Bank, Tun Foundation Bank, Kanbawza Bank, Asia Yangon Bank, Small and Medium Industrial Development Bank, Myanmar Livestock and Fishery Development Bank, Rural Development Bank, Inwa Bank, Asia Green Development, Ayeyawady Bank, Myanmar Apex Bank and Nay Pyi Taw Development Bank.

Among 20 private banks, Myanmar Livestock and Fishery Development Bank has already opened the most 109 branch offices. The private banks are preparing to launch their branch offices across the country and they had expected to run over further 100 branch offices during this year.

In the past, the government declared that any private bank needs to keep 700 million kyats as a collateral fund, the policy has been changed since the beginning of this year.

Due to the government's policy change, the private banks had won land rent permit, building lease permit and permission for opening of their branch offices at supermarket.

Moreover, the government is now making financial plans and will allow more than one year land rent permission to private banks that carry out their business tasks in real estate market for the development of business.

The government will also grant loans as moveable assets to be pawned.