Bangkok Bank (BBL), Thailand's largest lender by assets, is the only Thai bank among the first nine foreign ones to win a limited banking licence in Myanmar.
The approval is preliminary for 12 months, during which time the winning banks must comply with Central Bank of Myanmar requirements before starting limited operations by the end of that period, BBL executive vice-president Chairit Anuchitworawong said.
Licence winners are required to have minimum capital of US$75 million for an initial single branch, with business restricted to corporate and wholesale banking including underwriting trade finance.
Other Thai banks that applied for a licence were Siam Commercial Bank and Kasikornbank.
Mr Chairit said the BBL branch would focus on Thai corporations with business in Myanmar and local corporations, the same as all its international branches and representatives.
BBL has had a representative office in Yangon since 1995 and branches and representatives in 12 other countries and territories including China, Hong Kong, Japan, Laos, Malaysia, the Philippines, Singapore, the US and Britain.
Mr Chairit said BBL was not concerned about competition in Myanmar, as the targeted customers were different from those of other licence-winning banks.
The other eight foreign banks are Japan's three biggest, Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and Mizuho Financial Group; the Industrial and Commercial Bank of China; Australia and New Zealand Banking Group; Singapore's Oversea-Chinese Banking Corporation and United Overseas Bank; and Malaysia's biggest lender, Malayan Banking Bhd.
The bidding process was open to 40 international banks with representative offices in the country, and 25 applied.
Foreign banks are jumping on the Myanmar bandwagon in a bid to take first-mover advantage of the nascent economy after the government there started opening up the country.
Yasuhide Fujii, managing director of KPMG in Myanmar, said the foreign banks' main role would be to support a greater investment flow into the country.
"The other Thai banks that were not granted a licence this time can try again in the next round," he said.
"They can still maintain a presence by keeping their representative offices, letting the market digest developments and deciding their next steps. The Myanmar government has a lot on its plate right now. It's been working very hard to develop the country in several areas. Issuing these foreign banking licences will help get the ball rolling."
Separately, BBL won approval from the Cambodian government to reopen its Phnom Penh branch, giving it a presence in all Asean members except Brunei.
BBL shares closed yesterday on the Stock Exchange of Thailand at 205 baht, up one baht, in trade worth 869 million baht.