Hana Bank, a Seoul-based commercial bank that is the primary banking subsidiary of South Korean Hana Financial Group, reportedly has announced the establishment of Hana Microfinance, a microfinance institution (MFI) in Myanmar.Hana Microfinance plans to operate in 23 townships, where it will loan amounts of up to KRW 500,000 (USD 485) per individual.
Hana Bank has maintained an office in Yangon, the major commercial city of Myanmar, since 2012. However, due to the firm not possessing a sales license in Myanmar, its business activity has been limited. Hana Microfinance was awarded a license to operate in Myanmar following an official visit to Myanmar by Mr Shin Je-yoon, the Chairman of South Korea’s Financial Services Commission, which was intended to strengthen economic ties between the countries.
An unnamed official of Hana Bank reportedly said that “the microfinance unit is set to boost Hana Bank’s corporate image in Myanmar and potentially help the bank’s long-term goal of entering the local banking industry”[1].
As of June 30, 2014, Hana Bank reported total assets of KRW 23.5 trillion (USD 22.8 billion).
By Alíz Crowley, Research Associate
About Hana Bank
Hana Bank is a South Korean commercial bank headquartered in Seoul. The institution, which is the primary banking subsidiary of Hana Financial Group, has an international presence in China, Hong Kong, India, Indonesia, Japan, Singapore, United Arab Emirates, United States and Vietnam. As of June 30, 2014, Hana Bank reported total assets of KRW 23.5 trillion (USD 22.8 billion). Further financial information on Hana Financial Group is available on the group’s website.
Sources and Additional Resources
[1] Yonhapnews Agency, Hana Bank launches microfinance unit in Myanmar
MicroCapital, July 15, 2014, Woori Bank of South Korea to Acquire Cambodian Microfinance Institution (MFI) Malis Finance for $5m
MicroCapital, June 21, 2014, United Nations Development Program (UNDP) Transfers Microfinance Portfolio in Myanmar to Pact Global Microfinance Fund
MicroCapital, May 30, 2014, Myanmar Ministry of Cooperatives Allocates $52m for Microfinance in Agriculture
MicroCapital, July 16, 2007, South Korean Hana Bank Creates USD 32.6 Million Microfinance Fund
MicroCapital Universe Profile: Hana Bank
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