Written by Admin on July 19, 2013. Posted in Business, News, Top Stories
Myanmar government is finalizing regulations to allow joint ventures between the foreign banks and local partners, according to a Reuters report.
Foreign banks could be allowed to buy shares in the local lenders, reported Reuters which cited deputy finance minister Maung Maung Thein.
"Our country needs financing, so by letting foreign banks come in, or by letting them buy our equity, then foreign financial input will come in," he is quoted as saying by Reuters.
With the enactment of new central bank law, Myanmar is looking to restructure the banking industry in Myanmar. The central bank will become an independent body governing private banks and adopt monetary policies of the country under the newly-enacted law.
Foreign investment would help reform the country's banking system, the report suggest.
Over 30 foreign banks including Standard Chartered and Siamese Commercial Bank have country offices in Myanmar as they eye setting foothold in the country opening to the outside world.
According to the report, there are still some exceptions in allowing the joint ventures and some local banks would not be allowed to enter into a JV with foreign country as it doubts their resistance.
http://www.information.myanmaronlinecentre.com/myanmar-minister-hints-possible-joint-ventures-between-foreign-banks-and-local-partners/
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