KANBAWZA Bank (KBZ Bank) Limited, part of the KBZ Group of companies, has confirmed that they now have USD settlement account facilities via the international bank, Sumitomo Mitsui Banking Corporation’s New York branch (SMBC New York).
This will provide “streamlined remittance services that enable faster, more convenient trade financing and transactions between Myanmar and the United States”.
The announcement was made by Mr. Nobuyasu Akagi, General Manager of SMBC Yangon and Mr. U Win Lwin, Managing Director of the International Banking Division of KBZ Bank. (At present, KBZ Bank has more than 414 branches across Myanmar with nearly 690 ATMs, and over 190 currency exchange counters).
Mr. Akagi, “The arrangement allows KBZ Bank to centralise its USD clearing services through SMBC New York, which also improves the management of fees for transactions as a result of having to process transfers via different banks with varying respective costs”.
Mr. Akagi added “this is a momentous development…..the opening of a USD account, as a Myanmar private bank is a good example of how Myanmar financial institutions are committed to join the international community….this development will spur business growth between both countries, with KBZ Bank customers now able to utilise SMBC New York’s 24-hour USD clearing service, which eliminates cut off times for transfers….by opening a settlement account, money transactions will become smoother and it means Myanmar will penetrate the international banking community.”
The press conference was also attended by diplomats from the US Embassy in Yangon.
The Central Bank of Myanmar (CBM) is keen to encourage modernisation to bolster trade. One can still find the Hundi system for payments. Hundis are used as a form of remittance instrument to transfer money from place to place, as a form of credit instrument or IOU to borrow money and as a bill of exchange in trade transactions.
Sumitomo Mitsui Banking Corporation (SMBC) was established in April 2001 through the merger of two leading banks; The Sakura Bank, Limited, and The Sumitomo Bank, Limited.
FocusCore Myanmar helps companies open, establish and run their operations in Myanmar. This announcement is more news on how new services are working to help the rapidly growing Myanmar economy. If you have enquiries about incorporating your company in Myanmar, or are already trading in Myanmar and wish to establish overseas links, do not hesitate to contact us. We have a team of international and national staff offering world class solutions and services.
