COMPETITIVENESS OF FOREIGN BANKS IN MYANMAR

This study determines to identify the competitive forces of foreign banks in Myanmar and analyze the competitive strategies employed by foreign banks in Myanmar as well as explore the relationship between competitive strategies and organization performance. Myanmar banking industry becomes one of the major roles of the country because banks are the representative of the country’s development, main inflow and outflow of the trade financing and other financial services provided. In addition, Central Bank of Myanmar, (“CBM”) had allowed (4) state–owned banks, (27) domestic private banks, (13) foreign banks to be a soundly based financial system and sustained economic development. In 2015, all foreign banks are allowed to open as the foreign banks and branches in Yangon and commenced the operations in compliance with the CBM rules and regulations. Currently foreign banks could not open subsidiaries and serve the retail market which is restricted by CBM. Under the control of CBM, non-bank financial institutions such as foreign finance companies, local finance companies and microfinance companies are also become involved in order to strengthening the financial system of Myanmar. According to the survey result, the rivalry among banks had the high level and which was followed by new entrants, power of buyers, power of suppliers and availability of substitutes are also high level. Moreover, the study found out that foreign banks are mostly employed competitive strategies and emphasize to apply these generic strategies to grow the sustainable achievement. Among them, focus strategy had the highest score that foreign banks applied. According to the analysis results, the five-forces, competitive strategies, organization performance and competitiveness are interrelated with each other. Therefore, foreign banks should be applied the appropriate strategy within the competitive environment in order to develop the organization performance in Myanmar