Five New Banks To Be Licensed by the Central Bank

The five local private banks have applied for licenses to establish bank and will be allowed soon, said U Soe Thein, Deputy Chairman of Myanmar Central Bank.
At the National Parliament Assembly held on March 14, U Kyaw Htwe, MP of No.(8) Constituency, Yangon Region questioned U Soe Thein about what policies are needed to follow in establishing a bank.

The five banks applied for licenses are Myanmar Farmer Development Bank (Mandalay), Glory Farmer Development Bank (Sagaing), Mineral Development Bank, Myanmar Tourism Bank and Shwe Nann Saw Bank.

Of the five banks, Honorable Farmers Development Bank, Metal Development Bank and Myanmar Travel Bank are short-listed and will be allowed for licenses soon.

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Meanwhile, Myanmar Farmer Development Bank is allowed to run but the Bank has not paid the license fees so the license has not yet been licensed. The information has been sent to the Bank to deposit at the deadline March 31.

Shwe Nann Saw Bank has not been verifying the bank services so the license releasing date may take some time.

If the new local private banks will be developed more, it will increase the numbers of banks available for loans. “Myanmar has fewer banks if compared to our country’s population, GDP and economic size. Development in banking sector is concerned with the country’s future economic situation. So, the local banks are needed to establish more and more,” U Kyaw Htwe said.

The loan amount borrowed from the current local banks is still very low. Only if the SMEs will get more loan amount, they could export more products to the foreign countries. As a result, the country’s economic growth would be extended.

Meanwhile, there are 24 local private banks in Myanmar. When the new five banks are approved, there would be 29 banks in Myanmar.

Credit: 7Daydaily
Translated by: iMyanmarHouse.com