Thailand’s KBank to acquire 35% stake in Myanmar’s A Bank

Thailand’s Kasikorn Bank (KBank) is preparing to invest in Ayeyarwaddy Farmers Development Bank (A Bank) in Myanmar, according to government data.

The Myanmar Times understands that the Thai bank is looking to buy a 35 percent stake in the A Bank and has sought approval from the Central Bank of Myanmar (CBM) to do so.

The move comes after the CBM allowed foreign banks to hold shares in local banks in January 2019. Kbank currently operates a representative office in Yangon.

The acquisition will enable KBank to leverage on A Bank’s Myanmar network to expand its reach in the country. Established in 2014, A Bank has assets of K314 billion and registered capital of K40 billion.

KBank’s main offerings are in small and medium-size enterprise lending and retail and digital banking. Through A Bank, it will be able to expand its services to Myanmar businesses as well as Thai-investors based in the country.

The move will also promote bilateral trade between the two countries and comes after Ayeyarwady Bank in Myanmar and Thailand’s Siam Commercial Bank signed a memorandum of understanding last week to collaborate in the development of cross border payments and fund transfer services between the two countries.

Last October, the CBM and the Bank of Thailand agreed to promote the official use of the Myanmar kyat and Thai baht when trading at the border.

This story has been amended as some information in the earlier version is still under embargo.

To see the original article click link here

Source : Myanmar Times

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