Aung Kyaw Myo, managing director of private-owned Kanbawza Bank, said, “Our bank will launch banking services in rural areas by setting up branches.”

Cooperative Bank will also appoint its representatives in villages for its services.

A total of 19 private banks, with 408 branches, are operating in Myanmar with total capital of more than 401 billion kyats. 

Private banks have also launched services for international trade payments after the United States eased certain financial services and investment sanctions on the country. Some private banks have started US dollar-based currency movements this month following the US announcement.

One of the new banking services is issuing letters of credit.

The Central Bank of Myanmar has permitted 11 private banks in the third week of July to issue letters of credit and telegraphic transfer services. But only some of them were able to give quick services.

Although the central bank has allowed the private banks to transact in US dollars, euros and Singapore dollars, they used US dollars the most, according to banking officials.

In the past, Myanmar conducted its international currency transactions via banks in Singapore due to the European Union and US sanctions on the export of financial services.

Only the state-owned banks – Myanmar Foreign Trade Bank and Myanmar Investment and Commercial Bank – had handled international banking services for about 50 years since 1963, giving no opportunity to private banks.

(Source : Eleven)