Myanmar’s new restrictions imposed on its
second round of foreign bank licensing due early next year have
confused market participants.
The Central Bank of Myanmar (CBM) announced last Tuesday
that it would invite foreign banks to open branches onshore
early next year. But only banks from countries that have not
been granted licenses will be eligible.
Counsel have dismissed the CBM’s move as one
that could backfire on the country’s efforts to
attract more foreign direct investment to its nascent banking
"It is unknown why the Central Bank has adopted this policy.
Ultimately it is a restriction which may backfire," said
Alessio Polastri, managing partner at Polastri Wint &
Partners in Yangon. "You want the most suitable and
reputable banks in Myanmar regardless of where they are from or
in which country they...