Myanmar to allow foreign banks to operate in country

The central bank of Myanmar will allow foreign banks to conduct business in the country in September, local media reported Saturday.
At least five to 10 out of over 40 foreign banks having representative offices in the country will be chosen in line with rules and regulations for the sake of domestic banks and local entrepreneurs, the Union Daily quoted U Set Aung, vice-governor of Myanmar's central bank, as saying.
The permitted foreign banks must bring at least 75 million U.S. dollars in capital, of which 40 million U.S. dollars will be kept under the supervision of the central bank.
Rules and regulations to govern such operation have been prepared with the help of the International Monetary Fund (IMF).
Local banks are worried about the arrival of foreign rivals which are strong in terms of capital, technology and human resources, the report said.
A board for selecting foreign banks has been set up consisting of officials and experts from the Finance Ministry, the central bank, the Attorney-General's Office, a German advisory team, the IMF and the World Bank.
So far, there are more than 20 private banks and three state- owned banks in Myanmar.