UK-based
Standard Chartered Bank, which has recently been granted by Central
Bank of Myanmar to open its representative office in the country, will
not venture any joint, Peter Sands, Group Chief Executive, said.
“Our bank will follow the guidelines of
Central Bank (in which services to offer here), rather than make a joint
venture with a local partner (to open a branch office),” he said.
The globally prestigious bank is facing
restrictions in opening its branches in the country with fledgling
industry experience. Its chief executive said it will go after the
notifications of Central Banks to expand its range of banking and
financial services offered here.
Myanmar allows foreign banks to make
only joint ventures, bidding to protect its local banks which are deemed
unable to equally compete with international giants.
Foreign banks are able to open its
representative office only. Mr. Steven Groff, vice president of a
successful local ‘Asia Green Development Bank’, commented that it takes
time to make changes in their industry. He said it entails difficulties
and needs to work in stages.
Meanwhile, Standard Chartered will open
just a representative office in its third entry to the country, and will
mainly focus on providing services to interested global investors to
make investments in the country.
The bank operated its banking functions
in the country since 1862 until its operation was nationalized in 1963
by the government. Its history in Myanmar again re-established in 1995,
but because of international sanctions on Myanmar, the operations paused
again in 2004. Now is the third time for the Standard Chartered to
enter the market.
It is the multinational banking and financial service company, operating over 1700 branches and outlets worldwide.
There are 22 representative offices of
foreign banks and a financial institution in Myanmar, according to the
reports of Central Bank.
source: Eleven Myanmar
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