A total of four new foreign banks have received preliminary approval from the Central Bank of Myanmar to set up 100%-owned branches in Myanmar.

The four banks that have secured the approval include Vietnamese lender Bank for Investment and Development, Taiwan’s E.SUN Commercial Bank, South Korea’s Shinhan Bank and the State Bank of India.

"The preliminary approval is valid for 12 months during which the successful Applicants will have to fulfil commitments made in their answer to the RFP (Application), take all necessary measures to ensure functional banking operation from day one of business and will have to comply with requirements laid down by the Central bank of Myanmar," the central bank said in a statement.

With the new move, a total of 13 foreign banks have been granted to operate in Myanmar.

In April 2015, Japanese lender Tokyo-Mitsubishi UFJ (BTMU) became the first foreign bank to open a branch in the country.