YANGON - China's Industrial and Commercial Bank of China (ICBC) formally opened its branch in Yangon Tuesday, becoming the first Chinese commercial bank operating in Myanmar.

ICBC President Yi Huiman said at the opening ceremony that ICBC Yangon branch's inauguration represents an important achievement of economic cooperation between China and Myanmar, as well as an important milestone of ICBC in expanding its global layout.

ICBC is one of nine foreign banks awarded service licenses by the Myanmar government in October last year to open local bank branches in the country.

According to Yi, ICBC has established business branches in seven out of 10 ASEAN (Association of Southeast Asian Nations) countries, prior to the opening of its Yangon branch in Myanmar.

On the occasion, ICBC also signed an agreement with a Myanmar private bank, Yoma Bank, on facilitation of the direct flow of trade-related funds between Myanmar and China, according to a press release of the Myanmar bank.

In addition, the ICBC also signed agreements with some Chinese companies on related business links.

A total of nine foreign banks were granted service operation licenses in Myanmar October last year, the first time in more than five decades.

These banks are allowed to operate wholesale banking and lend money to foreign investment companies and local banks. They are also allowed to lend money to local companies through local banks or to lend a syndicated loan to local companies in cooperation with local banks.