They are Bank for Investment and Development of Vietnam, E Sun Commercial Bank from Taiwan, Shinhan Bank from South Korea and the State Bank of India.

The preliminary approval is valid for 12 months during which the successful applicant will have to fulfil commitments made in their applications.

The CBM invited applications for foreign bank licences between December and February 8, for the second time.

Taiwan topped the application list with eight.

The other seven Taiwanese banks were Cathay United, CTBC, First Commercial, Mega International, Taiwan Business, Taiwan Cooperative and Taiwan Shin Kong Commercial.

Among the applicants were Kookmin Bank and Shinhan Bank from South Korea and the State Bank of Mauritius.

The CBM has granted branch licences to foreign banks for the first time since 1963.

Since October 1, 2014, the green-light has been given to nine banks from six countries.

They can only open one branch with an initial investment of US$75 million and a deposit of more than half of the investment at the CBM.

Branches are not allowed to offer retail-banking services and will have to provide wholesale-banking services in cooperation with foreign companies and domestic banks.

The foreign banks can grant loans to domestic banks and foreign companies in kyat with an interest rate between 10 and 13 per cent.

They can also grant loans in foreign currencies.