ANZ has received Central Bank approval to open a representative office in Myanmar, formerly know as Burma, coming hard on the heels of the bank’s recently announced pact with Switzerland’s Vontobel.

ANZ has received Central Bank approval to open a representative office in Myanmar, formerly know as Burma, coming hard on the heels of the bank’s recently announced pact with Switzerland’s Vontobel.

ANZ says it is the first Australian bank to receive a licence from the Central Bank of Myanmar to operate, and the first bank of an OECD members state outside of Japan to receive approval to establish a presence in Myanmar, after the lifting of international sanctions earlier this year.

“This is another important step in our super regional strategy, particularly promoting greater connectivity in the Greater Mekong which we define as Vietnam, Cambodia, Laos, Thailand and Myanmar,” said ANZ chief executive of international and institutional banking, Alex Thursby.

“The representative office will strengthen our capability to connect customers across our international network and to access opportunities in Myanmar, as well as connecting our clients in Myanmar with new trade and investment opportunities,” Thursby continued.

This announcement follows the recent investor briefing of ANZ’s wealth management arm, where CEO Joyce Phillips outlined the division’s ambitions of becoming a “distinctive regional private bank”. Efforts to strengthen its presence in Asia started three years ago when the firm purchased Asian wealth management assets from Royal Bank of Scotland.

Untapped

While Myanmar itself does not currently have a developed wealth management industry, it has vast untapped natural resources that could lead to an upsurge in wealth in the future, if exploited.

ANZ believe its expertise in resources, agriculture and infrastructure offers something unique to clients interested in Myanmar. The nation is rich in natural resources such as arable land, minerals, energy and freshwater, and has significant economic growth potential over the medium term, said the firm in a statement.

Myanmar, with a population of 60 million, is the largest country in South-east Asia by landmass, bordering five nations, and is strategically located between China and India. Myanmar’s gross domestic product, currently US$43 billion, grew 5.3% in 2010 derived primarily from government investment and foreign investment into the oil and gas and agribusiness sectors.

Grant Knuckey, CEO of ANZ Royal Bank in Cambodia and chairman of ANZ Laos will have management oversight of the Myanmar representative office, which will be located in Yangon. ANZ’s license is subject to final administrative approvals and the representative office is expected to open early in 2013.

ANZ received the representative office license from the Central Bank of Myanmar following extensive discussions with the Government of the Union of Myanmar, and in consultation with the governments of Australia and the United States of America, and the Australian Prudential Regulation Authority. ANZ continues to be committed to complying with all requirements related to ongoing sanctions, said the firm.

In late November, ANZ recently inked an agreement with Vontobel, the Zurich-headquartered private bank, to serve each others’ clients. Vontobel will expand its activities in Asia-Pacific – primarily in the growth markets of Australia, New Zealand, Hong Kong and Singapore. Vontobel will provide expertise in global investments, structured products and tools, client advisory and client processes to the private banking business of ANZ. ANZ, which aims to grow its own private banking business in Asia-Pacific, wants to use Vontobel's expertise in the areas of investment management and structured products, as well as its advisory services for wealthy ANZ private clients.