In our blog of last November we outlined the news of a new Directive, issued by the Central Bank of Myanmar (CBM), authorising wholesale banking to be supplied by foreign banks to foreign corporates, foreign financial institutions, and local companies partnered with local financial institutions. A very significant step.
Then in December, news of a service to provide background checks for lenders that was opening in Myanmar – Myanmar Credit Bureau Limited, MCBL. Ready for new loan services to expand in Myanmar.
Now, on January 29 Directive No 1/2019 confirms the planned change for local banks, allowing up to 35 percent investment from an overseas institution. The local banks receiving the funding will not need to change their registered status as a Myanmar company, providing that the 35 percent rule is not exceeded.
This is all part of the changes introduced via The Myanmar Companies Law. This is very positive news for local banks, who seeking more capital, will now be able to boost further the growing economy.
Nevertheless each local bank institution will need to obtain authorisation prior to the investment. FocusCore, established in Myanmar since 2014, is here to help organisations obtain approvals, permits and visas to operate in Myanmar and overseas firms who wish to invest in local companies. Clearly, our detailed knowledge of the constant wave of liberalising changes in company incorporation and funding regulations is vital. We can provide you with information and resources so you can choose and place your investment and start operating rapidly in Myanmar.