ANZ Gets Preliminary Green Light For Myanmar Banking Licence; Other Banks Approved

Tom Burroughes

2 October 2014

Australia and New Zealand Banking group has won preliminary approval for a banking licence in Myanmar so it can cater to foreign companies operating in Myanmar and local financial institutions, a sign of the Asian country’s moves to open its doors to overseas firms.

Formerly known as Burma, Myanmar is seen as one of the faster-growing Asian economies. Myanmar’s gross domestic product is estimated to have grown at 7.5 per cent in 2013, with nominal GDP growth expected to exceed 10 per cent over the next five years, said in its statement yesterday.

Other banks have won licences recently, according to Business Times. Myanmar has granted nine foreign banks, including Singapore's Oversea-Chinese Banking Corp (OCBC) and United Overseas Bank (UOB), and three Japanese lenders, approval to operate on a limited basis.

ANZ crowed about winning the licence.

“Being one of the first international banks to be able to support clients in Myanmar is another milestone in our super-regional strategy and an important part of our ambition to connect customers with trade and investment flows across Asia with the Greater Mekong,” Andrew Géczy, chief executive for International and Institutional Banking, said.

“Given its size, economic potential and its strategic position between China and India, Myanmar is forecast to be one of the fastest growing economies in the region over the medium term,” Géczy continued, adding that the Australian government had been strongly supportive of the bank licence application.

ANZ chief representative in Myanmar, Rajesh Ahuja, will continue to lead the local entity reporting to ANZ CEO Cambodia Laos and Myanmar, Grant Knuckey.

The bank expects to operate under the new licence in June next year.

ANZ said it became, in 2013, the first OECD-based bank outside of Japan and the first Australian bank to establish a presence in Myanmar when it opened its representative office in Yangon.