Siam Commercial Bank (SCB), a leading bank in Thailand and Ayeyarwady Bank (AYA Bank), the second largest bank in Myanmar signed a Memorandum of Understanding (MOU) on collaboration in the development of cross border payments and fund transfer services between the two countries. The agreement is to explore and develop cross border payment for workers and for SMEs’ cross border transaction in order to encourage the use of formal cross border channels through the banks. The banks also agreed to explore on the Thai Baht and Myanmar Kyat direct conversion to support and service Thai and Myanmar clients of the banks.
This collaboration marks the two banks, the pioneer in support of the recent policy made in the MOU between the Central Bank of Myanmar and the Bank of Thailand on the collaboration to explore the use of Thai Baht and Myanmar Kyat for cross-border trade settlements. Currently, there are about USD$ 1.1 Billion FDI from Thailand which makes Thailand the 5th largest investor in Myanmar. AYA Bank will cooperate with SCB to help facilitate some of the Thai companies that need Myanmar Kyat for their investment and working capital requirements in Myanmar, as well as for the trade purposes.
The MoU signing ceremony was held recently and attended by AYA Bank Managing Director Mr. U Myint Zaw, SCB Advisor to the CEO on International Banking Business Mr. Kamalkant Agarwal, Executive Vice President and Head of the International Banking Ms. Apiradee Synsukpermpoon, and Chief Representative SCB Yangon Representative Office, Ms. Vitita Theeraporn
SCB is the first Thai bank in Thailand and has been the most profitable bank in Thailand for nine consecutive years. SCB is also the first Thai bank to lead the digital transformation in Thailand. The Bank has established its Representative Office in Yangon since 2012. SCB has been extensively supporting Myanmar banks and businesses through the years in terms of supporting FDI into Myanmar and provide over $200 million in trade credit to local partner banks.
Since its establishment is 2010, AYA Bank has been the fast growing bank in Myanmar to become the second largest in the country, with 258 branches, over 2.5 million customers, Kyat 6.75 trillion in Assets and Kyat 130 billion in Paid-up Capital. AYA bank has been the only Myanmar Bank to be IFRS Compliant since 2015 and has been a champion in adopting international standards of corporate governance practices. Recently, AYA Bank launched Mobile Banking 2.0 Application and AYA Pay to better serve its customers, enable easier payments and facilitate financial inclusion.