Cetegories Bank C

8/14/2019 Cetegories Bank C

1/7

Home Prime Minister News Investing Economic Zones Links Public Holidays Embassies Contact

Banking in Cambodia A personal overview by John Brinsden OBE

Timeline1975: The Khmer Rouge take control of Cambodia. Money is abolished and all banks areclosed.

1979 : After the Khmer Rouge are forced out, the new government establishes the National Bank of Cambodia (NBC) as the central bank and the Foreign Trade Bank as a

wholly-owned subsidiary of the NBC to provide commercial banking services.Cambodias new currency, the Riel, is introduced in 1980.

19921998: The first privately owned commercial banks and foreign bank branches/subsidiaries start to reappear initially with the requirement that the minimumcapital should be $5 million and the NBC should have a 15 per cent stake. By 1998 therewere 32 licenced commercial banks most of which were small local institutions withsome foreign private investors.
http://www.investincambodia.com/default.htmhttp://www.investincambodia.com/PM/primeminister.htmhttp://www.investincambodia.com/news/news.htmhttp://www.investincambodia.com/investing/investing.htmhttp://www.investincambodia.com/economic_zones/sezs.htmhttp://www.investincambodia.com/information_links/information_links.htmhttp://www.investincambodia.com/public_holidays/public-holidays.htmhttp://www.investincambodia.com/embassies.htmhttp://www.investincambodia.com/contact/contact.htmhttp://www.investincambodia.com/default.htmhttp://www.investincambodia.com/PM/primeminister.htmhttp://www.investincambodia.com/news/news.htmhttp://www.investincambodia.com/investing/investing.htmhttp://www.investincambodia.com/economic_zones/sezs.htmhttp://www.investincambodia.com/information_links/information_links.htmhttp://www.investincambodia.com/public_holidays/public-holidays.htmhttp://www.investincambodia.com/embassies.htmhttp://www.investincambodia.com/contact/contact.htm


2/7

19982001: Major reforms to the banking system introduced under new Governor H.E.Chea Chanto. New banking law classifies financial institutions into three categories: i)Full Commercial Banks with a minimum paid-up capital of $13 million, ii) SpecialisedBanks minimum paid-up capital of $2.5 million, and licenced/registered Microfinance

Institutions (MFIs). Banks are allowed two years to conform. The number of CommercialBanks halves to 16. The requirement for 15 per cent participation by the NBC isabolished.

2002Present: Reform process continues: the banking system initially suffers from over-liquidity and lack of quality borrowers. New banks arrive with foreign investors

particularly from Australia, Korea and Japan.

The Foreign Trade Bank is privatised. The number of licenced Commercial Banks growsto 24. In the face of inflationary pressures and a sharp increase in credit in 2008 the NBCintroduces measures to reduce liquidity and raises the minimum capital requirement for

Commercial Banks to $37.5 million (unless they have an A rated, or above, influential(see note 1) foreign bank as a shareholder). All banks must conform by no later than theend of 2010.

It can thus be argued that the modern banking system in Cambodia is only 30 years oldsince the Khmer Rouge set the clock to zero and abolished money in the mid-70s. Whenviewed from this perspective it is a remarkable achievement to have come so far soquickly and in spite of misgivings expressed in two influential reports issued recently bythe World Bank and the IMF, there are positive elements as well. Firstly, the NBC earnshigh marks for its prudent policies and regulations. Secondly, more and more banks are

beginning to appreciate the benefits of transparency even to the extent of obtaininginternational credit ratings.

Thirdly, the governments steadfast adherence to the market, freedom from exchangecontrols and unrestricted capital movements make it one of the most business friendlyenvironments in the region.

This having been said the score is Good but could do better. A good regulatoryenvironment is only good if it is consistently applied and effectively enforced. The

problem for Cambodia is a chronic lack of skilled resources in the supervisory area whichresults in some hesitancy in prosecution, and reality falling short of intentions. Some

progress is being made but there is still a way to go.

Transparency has improved considerably over the last decade but is still very mixed.Generally those banks which adhere to international standards in disclosure have done

better in capturing market share than those who cling to traditional secrecy: anincreasingly educated public are now demanding more information and placing their trustwith those that provide it. One particular area of concern in an economic down-turn is thehealth of the loan portfolio and reassurance that provisioning is adequate yet there arestill a few banks who insist that they have zero NPLs! (see note 2)


3/7

For a potential investor coming to Cambodia for the first time the banking system can besomewhat bewildering as the number of new financial institutions has proliferated.Unfortunately very few are internationally known or have strong banking backgrounds.The NBCs reaction to this has been to raise the licencing requirements both in terms of capital adequacy and professional qualifications and this may cause some of the smaller

ones to close (as happened in 2000 2001), amalgamate (although this seldom occurs inCambodia perhaps due to the family-owned structure of many of them) or sell. Of the 24commercial banks now operating the top-4 hold 70 per cent of total deposits and 73 per cent of loans in the banking system. Only one bank, Acleda, can claim to a truenationwide branch network in every province and town most banks concentrate their offices in the five major cities.

It is now easy to transfer money throughout the country and ATMs and PoS terminals arespringing up everywhere. Products and services are plain vanilla compared to thoseoffered in more advanced centres and there is still no money market although some of the

bigger banks have set up informal arrangements with each other. The US$ is the most

widely used currency particularly in the bigger cities but it is possible to have accounts inEuro, Aus$, Thai Baht, and almost any other major currency you wish as well as theCambodian Riel (see note 3) . There are no restrictions on foreign exchange. In this stillvery cash oriented society cash management and payrolls are important services,

particularly for manufacturers, wholesalers and distributors and a few banks have madethis a speciality.

The selection of a bank is obviously crucial and is well worth some research before adecision is made. Some obvious questions would be:

- Transparency: does the bank conform to international standards in auditing anddisclosure? How freely is this information accessible? Does it have an international creditrating? Does it comply with international conventions to avoid potential sanctions by theregulators in the major international financial centres?- Ownership and management quality?- Does the bank have a good correspondent network with major international banks tohandle foreign transactions?- Does your proposed business require access to services only in the major cities or moreextensive coverage in the provincial areas? Does it require any special services and howwilling is the bank to tailor make them?

These are just a few considerations but the best way of course is to meet and talk. Seeyou in Cambodia!

Notes1. Influential is defined as holding at least 20 per cent of the banks capital and having unlimited liability.2. Non-performing Loans loans which are more than 30 days past due.3. The NBCs attitude is to let the market decide whatever currency it wishes to use and for the present there is no official policy to de-dollarise the economy.


4/7

John Brinsden

John Brinsden OBE, is Vice-chairman of Acleda Bank Plc, which he joined in 1999 after a 38-year international career with Britains Standard Chartered Bank.

ANZ Royal Bank ANZ Royal Bank was established by Australia and New Zealand Banking Group Limited(ANZ) and the Royal Group of Cambodia, one of Cambodias largest corporations. ANZholds 55% of total shares on issue and Royal Group holds 45%. ANZ Royal Bank has anextensive network of ATMs throughout Cambodia and is the only bank that currently

provides internet banking in Cambodia. ANZ Royal Bank offers various banking products and services for both personal and business customers.Tel: +855 (0)23 999-000www.anzroyal.com

Cambodian Public Bank Cambodian Public Bank (Campu Bank) is a wholly-owned subsidiary of Public Bank Group which is one of the largest and strongest domestic banking groups in Malaysia.Campu Bank began banking in Cambodia in 1992 and today has a network of 15

branches. It has become the largest bank in Cambodia in terms of loans, assets and paid-up capital. Campu Bank was awarded 'Bank of the Year in Cambodia' by The Banker,London for five consecutive years from 2001 to 2005 and again in 2008 and 2009.
http://www.anzroyal.com/http://www.anzroyal.com/


5/7

Tel: +855 (0)23 987-297www.campubank.com.kh

Maruhan Japan Bank Launched in May 2008, Maruhan Japan Bank is Cambodia's first Japanese commercial bank. The bank provides comprehensive support and services to all businesses no matter what their size from small local enterprises to large multinational corporations, and

provides access to specialist expertise in many sectors including agriculture,telecommunications, transport and tourism. The bank has multi-lingual business bankingspecialists that can converse in Japanese, Korean, English, Vietnamese, French, Italian,Chinese and Khmer.Tel: +855 (0)23 999-010www.maruhanjapanbank.comAs a fully licensed commercial bank with capital of USD$25m, MARUHAN Japan

Bank has been established to fulfill the banking needs of both international anddomestic business investors.

MARUHAN Japan Bank can provide comprehensive support and services tobusinesses no matter what their size from small local enterprises to largemultinational corporations. We are here to help.

In addition to an array of international standard banking products and services,we can provide access to a wealth of specialist expertise in many sectorsincluding agriculture, telecommunications, transport and tourism. We also havemulti-lingual business banking specialists that can converse in Japanese,Korean, English, Vietnamese, French, Italian, Chinese and Khmer.

We pride ourselves in providing tailored banking solutions to fit the needs of ourclients and know that one size doesnt always fit all. By understanding yourbusiness and what drives it, we can provide innovative solutions that enable youto concentrate on what you do best managing your business.

We invite you to discuss your business needs with one of our financialspecialists and look forward to welcoming you as a customer of MARUHAN

Japan Bank.

National Bank of CambodiaThe National Bank of Cambodia was established in December 23, 1954. After thecountry gained the independence from France. www.nbc.org.kh
http://www.campubank.com.kh/http://www.maruhanjapanbank.com/http://www.nbc.org.kh/http://www.campubank.com.kh/http://www.maruhanjapanbank.com/http://www.nbc.org.kh/


6/7

The Association of Banks in CambodiaThe official organisation to represent the country's private banking sector.www.abc.org.kh

Stock Exchange CambodiaStock Exchange Cambodia is scheduled to open in 2009. The draft legislation oncorporate bonds is currently under process of finalising according to Prime Minister

Hun Sen. www.stockexchangecambodia.com

Securities and Exchange Commission of Cambodia (SECC)SECC regulates the securities industry in Cambodia to contribute to socio-economicdevelopment through capital mobilization from public/ securities investors to meet thedemand of financing for investors.http://secc.gov.kh/english/

IMF Cambodiahttp://www.imf.org/external/country/KHM/index.htm

IFC Cambodiahttp://www.ifc.org/ifcext/eastasia.nsf/Content/Cambodia

World Bank Cambodiawww.worldbank.org/kh

Ministry of Economy and FinanceMinistry of Economy and Finance (MEF) is delegated by the Royal Government to

perform the mission of guidance and administration of the economy and finance of theKingdom of Cambodia in order to support economic development and to improve theliving standards of Cambodian people based on the principles of a free market economyand social equality. Ministry of Economy and Finance

St.92, Sangkat Wat Phnom, Khan Daun Penh, Phnom Penh, CambodiaTel: 855-23-724 664 Fax: 855-23-427 798

Email: [email protected]://www.mef.gov.kh/
http://www.abc.org.kh/http://www.stockexchangecambodia.com/http://secc.gov.kh/english/http://www.imf.org/external/country/KHM/index.htmhttp://www.ifc.org/ifcext/eastasia.nsf/Content/Cambodiahttp://www.worldbank.org/khhttp://www.mef.gov.kh/http://www.abc.org.kh/http://www.stockexchangecambodia.com/http://secc.gov.kh/english/http://www.imf.org/external/country/KHM/index.htmhttp://www.ifc.org/ifcext/eastasia.nsf/Content/Cambodiahttp://www.worldbank.org/khhttp://www.mef.gov.kh/


7/7

Home | Prime Minister | News | Investing | Economic Zones | Links | Public Holidays |Embassies | Contact

Cambodian Public Bank commenced its business in Cambodia on 25 May 1992. It presentlyhas 15 branches: 6 in Phnom Penh, 1 each in Preah Sihanouk, Siem Reap, Battambang,Kampong Cham, Takhmao, Poipet, Bavet and Phnom Penh Special Economic Zone and a

Service Branch each in Monivong Boulevard and Phsar Doeumkor, both in Phnom Penh. Withthe trust and strong support from the public coupled with the commitment and dedication of

its staff, the Bank has grown to become one of the leading banks in Cambodia. In recognitionof its banking and management excellence, Cambodian Public Bank has been awarded the

Bank of the Year in Cambodia by The Banker, London for five consecutive years from 2001 to2005, 2008 and again in 2009.

Cambodian Public Bank is a wholly-owned subsidiary of Public Bank Group which is one of thelargest and strongest domestic banking groups in Malaysia. The Group offers a wide range of

banking and financial services. As at 31 December 2008, the Group's shareholders funds stoodat USD2.92 billion, the third highest amongst domestic banking groups in Malaysia while its

asset size amounts to USD54.42 billion. Public Bank has 243 branches in Malaysia andoverseas banking operations in Cambodia, the Peoples Republic of China, Hong Kong,

Vietnam, Laos and Sri Lanka.

Public Bank has over the recent years been accorded prestigious domestic and internationalrecognition for its banking and management excellence such as Best Retail Bank in Asia Pacificand Best Retail Bank in Malaysia 2009 by the Asian Banker, Retail Bank of The Year Malaysia

2009 by Asian Banking & Finance, Best Emerging Market Bank in Malaysia 2009 by GlobalFinance, Best Managed Company 2009 by Finance Asia, Best Bank in Malaysia 2009 by

Euromoney, Alpha South East Asia, Finance Asia and the Banker, London, CorporateGovernance Asia Recognition Award 2009 by Corporate Governance Asia and Best BankingGroup, Malaysia 2009 by World Finance. Tan Sri Dato' Sri Dr. Teh Hong Piow, Founder and

Chairman of Public Bank has been awarded 5 personal awards in 2007, including ASEANBanker of the Year, Lifetime Contribution to Banking as well as a Recognition Award inappreciation of his excellent achievement and contribution to the banking industry in

Cambodia by the National Bank of Cambodia for the past fifteen years in 2007.

Guided by its corporate mission "to be the most efficient, profitable and respected financialinstitution in Cambodia", Cambodian Public Bank is committed to be the premier bank in

providing the most courteous and efficient service in every aspect of its business and beinginnovative in the development of new banking products and services.

Who we are

ANZ Global

As one of the largest and most successful companies in Australia, our values help build asustainable future for our business, shareholders, staff, customers and communities. Our

business serves more than six million customers and our assets are worth $293 billion.We employ more than 30,000 people and are represented in our primary markets of Australia and New Zealand, as well as Asia, the Pacific, the UK, Europe and the UnitedStates.
http://www.investincambodia.com/default.htmhttp://www.investincambodia.com/PM/primeminister.htmhttp://www.investincambodia.com/news/news.htmhttp://www.investincambodia.com/news/news.htmhttp://www.investincambodia.com/investing/investing.htmhttp://www.investincambodia.com/investing/investing.htmhttp://www.investincambodia.com/investing/investing.htmhttp://www.investincambodia.com/economic_zones/sezs.htmhttp://www.investincambodia.com/economic_zones/sezs.htmhttp://www.investincambodia.com/economic_zones/sezs.htmhttp://www.investincambodia.com/information_links/information_links.htmhttp://www.investincambodia.com/public_holidays/public-holidays.htmhttp://www.investincambodia.com/public_holidays/public-holidays.htmhttp://www.investincambodia.com/public_holidays/public-holidays.htmhttp://www.investincambodia.com/public_holidays/public-holidays.htmhttp://www.investincambodia.com/embassies.htmhttp://www.investincambodia.com/contact/contact.htmhttp://www.investincambodia.com/default.htmhttp://www.investincambodia.com/PM/primeminister.htmhttp://www.investincambodia.com/news/news.htmhttp://www.investincambodia.com/investing/investing.htmhttp://www.investincambodia.com/economic_zones/sezs.htmhttp://www.investincambodia.com/information_links/information_links.htmhttp://www.investincambodia.com/public_holidays/public-holidays.htmhttp://www.investincambodia.com/embassies.htmhttp://www.investincambodia.com/contact/contact.htm

Documents

Cetegories Bank C