Myanmar opens banking sector more to foreigners

Foreign banks could own majority shares in joint-venture banks.

New legislation due to be passed in April might allow foreign banks to own to also apply for licenses for wholly-owned subsidiaries.

The proposed changes are part of legislation on central bank independence. Among the provisions are that foreign banks would be permitted to own 80% of joint ventures.

Among banks in line for a joint venture are Standard Chartered, the first foreign bank to reopen a representative office in Yangon. It’s the first Western bank to take this step since the new government took power in 2011.

Japanese banks are also likely to take part in opening JVs as Japan is Myanmar’s largest bilateral lender.