As part of ongoing efforts to liberalise the financial services sector and increase credit to the private sector, the Central Bank of Myanmar (CBM) has introduced regulations to facilitate foreign investment in domestic lenders. In January 2019 the CBM issued Regulation No. 1 of 2019, allowing foreign banks and financial institutions to hold equity of up to 35% in local banks, starting in January 2020. To obtain approval from the CBM, a domestic lender will have to provide a copy of the agreement with the overseas institution along with the proposed equity ratio. This change is expected to enhance competition, improve service quality and

  In a country where 70% of the population work in rural communities, and around a quarter of all citizens live below the poverty line, microfinance is one of the few available sources for personal and business funding. Myanmar’s microfinance institutions (MFIs) are thus a vital part of efforts to boost access to credit. Indicators of financial inclusion have historically been low in the country. According to the Making Access Possible (MAP) initiative of the UN Capital Development Fund (UNCDF), in 2014 only 6% of adults had more than one financial product, 30% used formal financial services and 5% had a bank account. As a