Thai banks with representative offices in Myanmar have a strong interest in applying for restricted-services licenses, after that country recently opened up for such applications from foreign banks for the first time. 4 Thai banks have representative offices in Myanmar - Bangkok Bank, Krungthai Bank, Siam Commercial
Thai banks with representative offices in Myanmar have a strong interest in applying for restricted-services licenses, after that country recently opened up for such applications from foreign banks for the first time.
4 Thai banks have representative offices in Myanmar - Bangkok Bank, Krungthai Bank, Siam Commercial Bank and Kasikorn-bank. If they can obtain the banking licenses, they will be able to receive deposits and provide loans, unlike now when they can only provide consultancy services.
The Central Bank of Myanmar plans to make between five and 10 licenses available this year for limited banking services. Only the 42 banks that have already opened representative offices are allowed to submit expressions of interest to win the restricted banking licenses.
Of the 4 Thai banks in Myanmar, Bangkok Bank has the longest history in the country, setting up a representative office in 1995. The other three established representative offices in the past 2 years.
Kittiya Todhanakasem, first senior executive vice president of Krungthai Bank, said it was hoping to obtain a full branch license eventually.
"We are interested in opening a full branch there to serve clients, as many businesses are waiting for the bank's services," she said.
According to Thailand's Board of Investment, as of the end of March, Thailand was the second-biggest investor in Myanmar with total accumulated value of $10.09 billion.
More than half of foreign direct investment in Myanmar is in the power sector, followed by manufacturing at 21% and 10% in transport. Of Thai direct investment in Myanmar, 78% is in mining and quarrying, followed by financial and insurance activities at 17%.