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Supervised By: Prof. Shweta Bambuwala

Study on Banking Industry of Cambodia

Banking Industry of CambodiaPresented By:Monalisa Padaria (NR 13086)Sonali Desai (NR 13032)Priya Rai (NR 13113)SarathiTrivedi (NR 13165)Aashkaran Gadhvi (NR 13040)Bhavya Gohel (NR 13044)Introduction of CambodiaCambodians financial sector is at a initial stage

Before 1989, Cambodia had a monobanking system which National Bank acted as central and commercial

From 1989, Government decree to separate the function of commercial banks from NBC

Banking Structure in Cambodia Before relicensing program, commercial banking system consist of 31 banks, including :

2 Government-owned banks22 locally incorporated banks7 foreign branches bank

After relicensing program until present, commercial banking system consist of 17banks, including

1 state owned bank10 locally incorporated banks3 foreign branches bank 3 specialized bank

Comparison of STEEPLED AnalysisSTEEPLED AnalysisSTEEPLED FACTORCambodiaGujaratSocial The average annual growth rate of real GDP between 2001 and 2007 was 9.6 per cent per annum. Private consumption prices decreased by 6.2 percent in 2007, compared with the 6.8 per cent increase in 2006.

Gujarat milkmen get their own bank accounts, ATM cards

Awareness for farmers & PACS by Stalls and Shibirs

Technology The Government has asked for assistance from UNESCO to take some initiative to review the current state of science and technology, innovation policy and education of this sector.

Lack of e-banking and access to services.

They are behind many countries when it comes to tech usage in banking sector including India. banks have move towards universal banking

Increased use of technology based services like smart cards, ATM, mobile banking, HR and ERP, process reengineering.

Cashless and paperless payment modes.

STEEPLED FACTORCambodiaGujaratEnvironment Cambodia has liberal and competitive investment laws and it also has great potential to receive business investments in all the sectors as they allow 100% foreign investments.

Collapse of LEHMAN BROTHERS did have an adverse impact on the banking sector of Cambodia but Douglas Clayton(head of investment funds) stated, Cambodias lack of integration into global economy helped it escape from the worse effects of the crises

Collapse of LEHMAN BROTHERS lead to dollar liquidity and later RBI had to sell Dollars

It had an adverse impact on domestic Liquidity conditions.

To deal with the crises, Reserve Bank used instruments like CRR(cash reserve ratio), SLR(Statutory liquidity ratio).STEEPLED FACTORCambodiaGujaratEconomic The banking and micro finance sector of Cambodia has 22 commercial banks, 6 specialized banks and 18 micro finance institutions.

Banking and service sector contributes 41% to the GDP of Combodia, where as agriculture 27% and industry 32%.

Gujarat GDP contributes 7% to Indian GDP

Banking and service sector contributes 59% to the GDP of Gujarat, where as agriculture 16% and industry 25%.

STEEPLED FACTORCambodiaGujaratPolitical Political Stability and Stability of the Banking Sector in Cambodia are stable. They have an open economy so they allow 100% foreign investment in most of the industries hence, the core sectors that the Government emphasis on for development is rice farming, garments, manufacturing and tourism. Banks provide loans to the small scale industrialists who have a major role in the political development of Gujarat Banks provide loans to some regional political parties and independent contestants so that they can take part in the elections

STEEPLED FACTORCambodiaGujaratLegal Under law of Cambodia, a merger of two or more commercial entities is possible, with the underlying principle that all assets and liabilities of the two or more merged entities automatically pass to the new entity recognized by law.

Cambodian law in relation to mergers is currently unclear in a number of areas, particularly in respect of procedure and administration, and the provisions are not well tested in practice.. The top-down view shows central banks overseeing financial activities for the entire nation.

Electronic fund transfer systems, Automated Teller Machines (ATMs), and computerized home-banking services all combined to transform the way that banks conduct business.STEEPLED FACTORCambodiaGujaratEthical Professional ethics and code of conduct Lack of Accounting and Auditing clearance (case : ANZ BANK ) The Ethical Policy requires that all business accounts are screened at the time of account opening by the staff person dealing with the member.the highest standards of honest and ethical conduct,highest level of confidentiality and fair dealing within and outside the Bank

.STEEPLED FACTORCambodiaGujaratDemographic The number of private local banks is increasing every year while there is no growth in number of the foreign and state-owned banks.

Total assets reached more than US$1 billion in 2013, an increased around 43% compared to the previous year

The concern largely centers on the much-debated demographic dividend, or the rising proportion of working-age people in Gujarat.

The recent One Globe 2013 knowledge conference in New Delhi emphasized the role that Banking industry needs to play

SWOT Analysis of Banking Industry in Cambodia

StrengthGovernment support, especially NBCStrong support from international organizations, such as WB, ADB, IMF, IFC etc.Association of Banks in Cambodia (ABC)WeaknessHighly dollarized financial systemHighly liquid in the banking sectorNo Capital MarketsOpportunityEconomic growthPublic trustWTO accessionLow level of savings intermediationThreatsPolitical riskCompetition From Foreign Banks

SWOT Analysis of Banking Industry in Gujarat

StrengthHigh standard regulatory environmentBank lending has been a significant driver of GDP growth and employmentPresence of more number of smaller banksLarge manpower with relevant banking skillsApproximately 53000 networks of branches spread all over the countryAnywhere banking and anytime banking has become a realityBanks have gained financial strengthsWeaknessLow operating sizeHigh operating costFinancial exclusionInadequate deposit mobilization effortsPoor customer serviceCredit to non-productive sectorsUnsatisfactory work cultureInadequate access to global financial systemOpportunityFreedom to pursue new lines of businessFreedom in pricing and structuring their productsOpportunities to access foreign market.Growing SME sector leading to greater demand of credit facilities.ThreatsRe-structuring of the assetsInternational and other CompetitorsHuge surplus manpowerAbsence of good work cultureAntiquated laborlawsHigh level of Non Performing assets(NPA) i.e. 6% are reserved

SWOT Analysis of Banking Industry in Jammu & Kashmir

STRENGTHLocated in the residential as well as commercial areasbank has six days/week working scheduleauthority to deal in foreign exchangewide range of scheme and services to meet diverse customer needsProduct and servicesWEAKNESSNo branch in foreign country.Not very attractive for the customer. Bank lacks in sales promotion and advertisement. ATM services are very less.OPPORTUNITYCompany can explore and exploit its growth potential assessed in profileTHREATSCompetitorTechnology

Bilateral Trade Opportunities Co-operate in a number of privatized and foreign era

Indian private sector investment in Cambodia The beginning

Cambodia-India Centre for English Language Training (CICELT)

India can find opportunities in banking sector mainly in corporate and privatized bank.

Indian banking can try to make some political relations and help them have awareness about the concerned matters of the country.

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