(a) Any person wishing to conduct banking business under this Law must apply to the Central Bank for a license in the prescribed form together with the following documents-

(i) document evidencing that proposed applicant is a company or an entity incorporated under the Laws of Myanmar;

(ii) a copy of the proposed applicant’s Memorandum of Association, its Articles of Association and any other document associated with its formation;

(iii) the proposed location of the principal place of business and the branch offices of the proposed bank;

(iv) copies of the audited balance sheets and profit and loss accounts of the applicant;

(v) the amounts of the authorized and subscribed capital of the proposed institution;

(vi) a business plan for the proposed institution, setting out the types of activities envisaged for and the structural organization of the proposed institution;

(vii) the qualification and experience, business or profession, the financial condition of owners of substantial interest in the proposed institution;

(viii) the qualification and experience, the directors and chief executive of the proposed institution;

(ix)  an authorization of the applicant permitting the Central Bank to carry out financial, criminal and professional background checks on the applicant, its directors and chief executive and affiliated persons;

(x) an authorization of the owners, directors and chief executive of the proposed institutions, permitting the Central Bank to carry out financial, criminal and professional background checks on them and affiliated persons;

(xi) such additional information as shall be prescribed by regulation of the Central Bank.

In addition to the documents listed in section 8 of this Law, the following documents shall accompany the application by a foreign bank for a license to carry on banking business in Myanmar through a subsidiary or branch –

(a) a credit rating report by an international credit rating agency;

(b) a statement of its capital position, its ranking by total assets and capital in its home country and globally;

(c) a written undertaking of the foreign bank, to provide such funds as may be necessary to meet all its obligations relating to the business activities of its subsidiary or branch in Myanmar;

(d) a written statement from the bank regulator of the country where the foreign bank maintains its principal place of business certifying that:

(i) the foreign bank has a valid license to carry on banking business in that country;

(ii) the foreign bank is authorized under the law of that country to establish a subsidiary or a branch in Myanmar;

(iii) no facts are known to the regulator showing that any director or officer of the said foreign bank are not fit and proper.

(b) No foreign financial institution shall, through its representative office, carry on within Myanmar any banking, development banking or NBFI business.

(a) Banks shall hold capital in the following manner-

(i) in the case of a bank incorporated in Myanmar, its paid-up capital is not less than twenty billion kyat;

(ii) in the case of branch or subsidiary of foreign bank, its paid-up capital is not less than the equivalent of seventy five million US dollars.

A foreign bank shall maintain for its bank branch, a minimum amount of assigned capital, which amount shall be the same as the minimum amount of initial capital  funds to be maintained if such foreign bank branch was established and licensed as a domestic bank.     

(b) The assigned capital to be maintained by a foreign bank for its branch shall be kept in the form and manner as may be specified by the Central Bank in a regulation.

The provisions of section 60 and 61 shall not apply to foreign bank and their foreign bank branches.

No foreign financial institutions shall establish the representative office unless it has a registration certificate issued by the Central Bank.

Any person wishing to carry out banking business shall be –

(a) a company incorporated under written Laws in Myanmar and has a valid license issued by the Central Bank;

(b) a foreign bank subsidiary or branch with a valid license issued by the Central Bank;

(c) a person who is exempted under section 19.

Any bank, holding a license issued by the Central Bank, shall –

(a) comply with all conditions and restrictions imposed by the Central Bank ;

(b) commence its operations within one year from the date of receipt of its license to operate;

(c) not carry on any activity other than the activities permitted under this Law; and

(d) conspicuously display a copy of its license at each of its place of business.

(b) Every bank shall pay the following fees not less than one month before the anniversary date of the issue of the license –

(i) a license fee upon being licensed;

(ii) a fee for opening any office in Myanmar other than the office at the principal place of business;

(iii) an annual fee on the license so issued and in respect of each office, including the office at the principal place of business.

Any bank incorporated in Myanmar seeking to alter its Memorandum of Association or its Articles of Association shall get the prior written authorization of the Central Bank.

(a) A company wishing to carry on NBFI business shall apply to the Central Bank for the registration certificate as prescribed by the Central Bank.

(b) Persons carrying on NBFI business prior to the effective date of this Law shall apply to the Central Bank within 6 months of the effective date to obtain a registration certificate from the Central Bank to carry on NBFI business.

Foreign financial institution seeking to set up a representative office in Myanmar shall obtain the registration certificate of the Central Bank.

(a) Every NBFI, or every representative office shall, within three months notify the Central Bank of any amendment or alteration to any of its constituent documents;

(b) The notification in sub‐section (a) must be duly verified by a statutory declaration made by a director of the NBFI or representative office.

Only persons having a valid license granted by the Central Bank may carry on the business of accepting deposit.

Except with the written consent of the Central Bank, no financial institutions or person can make unsolicited calls for the purposes of-

(a) soliciting or procuring for the making of deposit in Myanmar; or

(b) entering into or offering to enter into any agreement with a view to the acceptance of deposit in Myanmar.

(a) A bank  shall maintain a reserve fund and a sum equal to twenty five per centum of the net profits of that year shall be transferred to its reserve fund. Such transfer shall be made so long as the amount of the reserve fund is equal to one hundred per centum of its paid ‐up capital;

(a) With the prior written approval of the Central Bank, banks shall carry on the following-

(i) for a bank to acquire the business or a substantial part of the business of another bank or to sell all or a substantial part of its own business;

(ii) for the amalgamation or merger of a bank with another bank;

(iii) for a foreign bank to acquire the business or a substantial part of the business of a bank in Myanmar or to sell all or a substantial part of its own business in Myanmar;

(iv) which will result in a change in the control of a bank or its holding company.

No bank shall engage, whether on its own account or on a commission basis, in wholesale or retail trade including import and export trade, unless –

(a) in the course of satisfaction of debts due to it;

(b) purchasing or selling of gold or foreign currency by the bank.

A bank shall not purchase or in any other way acquire any immovable property therein, exceeding such percentage of its capital funds as may be determined by the Central Bank, unless-

(a) required for the purpose of conducting its banking business or of providing housing or other amenities for its staff;

(b) accepting any immovable property as security for a debt.

(a) A bank shall not take on financial exposure in respect of a person or a single counterparty or group of connected counterparties which constitutes in the aggregate a liability amounting to more than twenty per centum of the core capital of the bank. Such restriction shall not be applied to the exposure related to the Government policy by the state-owned banks.

(a) A bank shall not acquire or hold shares in any company or enterprise-

(i) that is not a public company and that does not meet the criteria determined by the Central Bank;

(ii) that carries on the type of business that is declared ineligible by the Central Bank.

(b) A bank shall not acquire or hold shares of, in any company or enterprise to an aggregate value in excess of ten per centum of the unimpaired capital funds of the bank.

A bank shall obtain the prior written consent of the Central Bank on the followings-

(a) establish or acquire any subsidiary within or outside Myanmar;

(b) any office in or outside Myanmar.

A bank shall be prohibited from-

(a) entering into contracts or agreements or adopting practices of any kind which would secure them a position of dominance in the financial markets;

(b) engaging in manipulative practices in order to obtain an unfair advantage for themselves or for third parties.

No person shall establish a bank and carry on the banking business unless a license granted by the Central Bank.

No person shall establish a NBFI and carry on NBFI business unless it has a registration certificate issued by the Central Bank.

No person shall submit false or misleading information in connection with an application for license to the Central Bank.

No person other than the following institutions shall use as part of its name or its description any of the words “ bank ”, “ commercial bank”, “development bank”, “ banker ”, or “ banking ” unless it has a license or prior written approval of the Central Bank –

(a) an association of bank;

(b) an institution with respect to which such usage is established or recognized by law or international agreement;

(c) the representative or office of a foreign bank; 

(d) any institution acting on behalf of the Government which carries on banking;

(e) any persons exempted by the Central Bank, by notification.

No person shall receive, take, or accept deposits unless it has a valid license under this Law.

No person shall assume or use the words "finance company ", "leasing", "factoring", "credit token", "money services", or any derivatives of these words in any language, unless it has a registration certificate or prior written consent issued by the Central Bank.

No financial institution or person shall, without the written consent of the Central Bank, make unsolicited calls from any person in Myanmar or outside Myanmar by soliciting or procuring for the making of deposit; or entering into or offering to enter into any agreement with a view to the acceptance of deposit.

No financial institutions shall make a false, deceptive, offensive or misleading advertisement in connection with its permitted activities.

No licensee shall transfer its license to another person.

Except with the prior written approval of the Central Bank, no bank shall-

(a) sell all or a substantial part of its own business;

(b) acquire the business or a substantial part of the business of another bank;

(c) amalgamate or merge with another bank;

(d) in the case of a foreign bank to acquire the business or a substantial part of the business of a bank in Myanmar; and

(e) in the case of a foreign bank to sell all or a substantial part of its own business in Myanmar.

No person who issues e- money or credit token to the public shall violate any provision of this Law or a regulation issued under this Law.

No private credit bureau shall violate any consumer protection regulations or fail to furnish correct information that may be required by the credit reference system.