Three Taiwanese Banks May be Allowed to Set up Branches in Myanmar

Three Taiwanese banks, namely First Bank, E. Sun Bank and Cathay United Bank, will likely be the first foreign investors to tap the financial market in Myanmar with the country reportedly soon to allow foreign banks to set up branches.

Taiwan's Financial Supervisory Commission (FSC) recently approved the applications from the said three banks for establishing branches in Myanmar and ratified Taishin International Bank to set up a representative office. In addition, FSC has already allowed four other Taiwanese banks to set up footholds in Myanmar, including Mega International Commercial Bank, CTBC Bank, Shin Kong Commercial Bank, and Bank of Taiwan.

Jean Chiu, deputy director-general of FSC's Banking Bureau, indicates that Myanmar has in recent years gradually liberalized its market to foreigners as its political and economic situations improve. The country is attractive to foreign investors, with more than 60 foreign banks reportedly on the waiting list to open branches.

Chiu suggests Taiwanese banks should target Taiwanese enterprises in Myanmar first, which is believed to help both Taiwanese banks and enterprises to reinforce strength in Southeast Asia as the country is an ASEAN (Association of Southeast Asian Nations) member. (JL)