What’s on – Hong Kong Macau and Myanmar Chamber of Commerce & Industry

Overseas Investors Allowed to Hold Maximum 35% Stake in Local Banks

The Central Bank of Myanmar (CBM) issued Circular Letter 1/2019 on 29 January, 2019, stating that domestic private banks will now be able to accept up to 35% equity investments from foreign banks and financial institutions. The Circular Letter comes into effect immediately. Domestic private banks that wish to accept foreign investments under the circular are required to submit a set of documents to the CBM, including a copy of the mutual agreement describing the equity investment ratio, the terms and conditions of the investment, and others. Any such equity investment arrangement between a domestic private bank and the local branch…

Local Banks Cleared to Offer Unsecured Loans and Three-Year Mortgages

As of 1 February 2019, local banks in Myanmar will be permitted to extend credit to all businesses without the need for it to be guaranteed against existing assets (including land and property). While financial institutions may charge a higher rate of interest rate on these unsecured loans than the national standard (13%), the applicable rate must not exceed 16% per annum. In a bid to boost the country’s residential property market, local banks have also been given approval to allocate up to 5% of their loan portfolio towards mortgages with a duration of three years or less. All mortgages…

Myanmar Opens Up to Foreign Insurance Companies

The Ministry of Planning and Finance (MOPF) announced on 2 Jan that they are ready to grant permission to foreign companies wishing to operate businesses offering life and non-life insurance in Myanmar. The move comes amid efforts to “accumulate the investment needed for the country’s economic development, and to develop the non-banking financial sector,” according to the official statement released by the ministry. The ministry said it is now inviting expressions of interest and request for proposals from companies looking to operate here which will be assessed by Myanmar’s Financial Regulatory Department. The MOPF has specified that insurance companies must…