[PHNOM PENH POST]
The Ministry of Economy and Finance yesterday urged companies intending to list on the Cambodia Securities Exchange (CSX) to buy insurance to bolster public confidence.
Vice
President Bo Chanpiro of the Financial Industry Department of the
Ministry of Economy and Finance said the finance sector relies not only
on the banks and the securities exchange, but also on the insurance
industry.
“The insurance companies play a very important role in
investor security at exchanges around the world and both sectors reply
upon each other,” he said. “An insurance company cannot succeed without a
securities exchange and a securities exchange has no full power to
develop if it has no insurance presence,” he said.
CSX Committee Deputy Manager Sou Socheat said the Cambodia Security Exchange still faces hurdles.
“The CSX needs confidence. In fact, building confidence requires insurance but many insurance products are complex.”
Forte
Insurance General Manager York Chamroeunreth said it was very important
to build risk awareness for future companies. He said Forte Insurance
had compensated many millions of dollars for staff mistakes that caused
the company to lose benefits and income.
Showing posts with label Financials. Show all posts
Showing posts with label Financials. Show all posts
September 6, 2012
March 22, 2012
Credit bureau launches after delays
[PHNOM PENH POST]
The Credit Bureau of Cambodia officially commenced operations at its Phnom Penh headquarters on Monday, according to CBC spokesman Steve Vaile, almost four years from when the idea for the bureau was first conceived.
The CBC, a joint venture between Australia and New Zealand-based Vida Advantage, the Cambodia Microfinance Association and Association of Banks in Cambodia, aims to centralise loan information from the Kingdom’s banks and microfinance institutions in order to allow for better lending facilitation in the country.
Lenders will have easier access to the loan records of potential debtors, which causes a “reduction in finance sector loan rates because they have more information”, Vaile said.
“Foreign direct investment increases as there is more transparency in the sector,” he added.
The Credit Bureau of Cambodia officially commenced operations at its Phnom Penh headquarters on Monday, according to CBC spokesman Steve Vaile, almost four years from when the idea for the bureau was first conceived.
The CBC, a joint venture between Australia and New Zealand-based Vida Advantage, the Cambodia Microfinance Association and Association of Banks in Cambodia, aims to centralise loan information from the Kingdom’s banks and microfinance institutions in order to allow for better lending facilitation in the country.
Lenders will have easier access to the loan records of potential debtors, which causes a “reduction in finance sector loan rates because they have more information”, Vaile said.
“Foreign direct investment increases as there is more transparency in the sector,” he added.
March 13, 2012
Financing Cambodia’s Muslims
[PHNOM PENH POST]
Islamic finance could help to boost trade between Cambodia and the Middle East, as well as attract investment from Muslim-majority countries, experts said on Saturday.
Knowledge of Islamic finance and banking, which bars interest lending and discourages unfair trade advantages, is almost nonexistent among Cambodia’s Muslims, which comprise about 2 per cent of the country’s population.
But demand for halal business practices is increasing in Malaysia and Middle Eastern countries, according to insiders.
With more education on Islamic law, domestic Muslims could dominate trade with those countries and attract investment from Islamic banks in the region, experts and Muslim business owners said.
“Most investors in the Middle East are certainly looking for Islamic-compliant business in countries that aren’t majority Muslim,” Ashraf Bin Md Hashim, head of consultancy at the International Shari’ah Research Academy for Islamic Finance, said on Saturday on the sidelines of Cambodia’s first conference on halal finance.
Islamic finance could help to boost trade between Cambodia and the Middle East, as well as attract investment from Muslim-majority countries, experts said on Saturday.
Knowledge of Islamic finance and banking, which bars interest lending and discourages unfair trade advantages, is almost nonexistent among Cambodia’s Muslims, which comprise about 2 per cent of the country’s population.
But demand for halal business practices is increasing in Malaysia and Middle Eastern countries, according to insiders.
With more education on Islamic law, domestic Muslims could dominate trade with those countries and attract investment from Islamic banks in the region, experts and Muslim business owners said.
“Most investors in the Middle East are certainly looking for Islamic-compliant business in countries that aren’t majority Muslim,” Ashraf Bin Md Hashim, head of consultancy at the International Shari’ah Research Academy for Islamic Finance, said on Saturday on the sidelines of Cambodia’s first conference on halal finance.
March 8, 2012
Riel sees stable gains on dollar this year
[PHNOM PENH POST]
A steady rise in the value of Cambodia’s riel since the beginning of the year demonstrated increased confidence in the currency often shadowed by predominant usage of the US dollar, officials said yesterday.
The riel has strengthened 1 per cent against the dollar since early January, according to a commodity price report from the Ministry of Commerce.
The currency traded at 4,013 riel per dollar yesterday, up from 4,057 riel at the beginning of the year, the report showed.
“The consequent rising value of riel proves there is more confidence in local currency, and it can help to strengthen the usage of the riel,” said Ngoun Sokha, director general and spokeswoman of the National Bank of Cambodia.
National holidays and the rice harvest season – which inflate the riel every year at this time – have also contributed to the currency’s slight gain, she said, although demand for the riel this year has been greater than last year.
A steady rise in the value of Cambodia’s riel since the beginning of the year demonstrated increased confidence in the currency often shadowed by predominant usage of the US dollar, officials said yesterday.
The riel has strengthened 1 per cent against the dollar since early January, according to a commodity price report from the Ministry of Commerce.
The currency traded at 4,013 riel per dollar yesterday, up from 4,057 riel at the beginning of the year, the report showed.
“The consequent rising value of riel proves there is more confidence in local currency, and it can help to strengthen the usage of the riel,” said Ngoun Sokha, director general and spokeswoman of the National Bank of Cambodia.
National holidays and the rice harvest season – which inflate the riel every year at this time – have also contributed to the currency’s slight gain, she said, although demand for the riel this year has been greater than last year.
March 7, 2012
Dagong puts Cambodia's sovereign credit rating at B
[XINHUA]
BEIJING, March 6 -- The Dagong Global Credit Rating Company on Tuesday assigned Cambodia a local and foreign currency sovereign credit rating of "B" with a stable outlook.
The rating indicates that the country's economic, financial and fiscal condition is still weak despite continuous improvement, forcing the Cambodian government to rely on international assistance and concessional loans and weakening its debt repayment capability, the agency said.
The rating was Dagong's first for the southeast Asian country.
Dagong said the country's short-term economic growth rate will decline from 6 percent in 2011 to 4.5 percent and 5 percent in 2012 and 2013, respectively, due to the impact of the worsening global economic environment.
However, the Cambodian economy will have relatively strong momentum and grow at a high level with the help of international assistance and vigorous growth in other Asian economies, Dagong said.
BEIJING, March 6 -- The Dagong Global Credit Rating Company on Tuesday assigned Cambodia a local and foreign currency sovereign credit rating of "B" with a stable outlook.
The rating indicates that the country's economic, financial and fiscal condition is still weak despite continuous improvement, forcing the Cambodian government to rely on international assistance and concessional loans and weakening its debt repayment capability, the agency said.
The rating was Dagong's first for the southeast Asian country.
Dagong said the country's short-term economic growth rate will decline from 6 percent in 2011 to 4.5 percent and 5 percent in 2012 and 2013, respectively, due to the impact of the worsening global economic environment.
However, the Cambodian economy will have relatively strong momentum and grow at a high level with the help of international assistance and vigorous growth in other Asian economies, Dagong said.
Cambodia’s top micro manager
[PHNOM PENH POST]
Microfinance institutions have seen rapid growth over the last few
years, and continue to form an important and expanding part of
Cambodia’s emerging economy. Prasac, Cambodia’s biggest MFI when
measured by outstanding loans, has grown to the point where it now plans
to become a licensed commercial bank, which the Post reported last week.
Post reporter May Kunmakara sat down with Prasac president and CEO Sim
Senacheert to discuss the state of the Kingdom’s MFI industry.
How did the floods affect the industry late last year?
Of course, we were worried when the floods began because many people were affected. When the floods continued, we did a survey and found that just about 10 per cent of MFI borrowers were affected. But after further research later on, we found that even fewer people were in fact affected. Some of our clients were able to diversify their revenue because they had options in areas other than farming.
How did the floods affect the industry late last year?
Of course, we were worried when the floods began because many people were affected. When the floods continued, we did a survey and found that just about 10 per cent of MFI borrowers were affected. But after further research later on, we found that even fewer people were in fact affected. Some of our clients were able to diversify their revenue because they had options in areas other than farming.
Mobile cash gaining traction
[PHNOM PENH POST]
Digital cash services in Cambodia showed marked increases in users and cash flow in 2011, and still more growth is expected this year as operators launch new services and partnerships to capture a large but still-untapped rural market.
The services, in which customers transfer money via their mobile phones, have in a few short years formed a fledgling market in the Kingdom with about 400,000 users, according to the National Bank of Cambodia.
Australian and New Zealand Banking Group Ltd, which has a partnership with domestic conglomerate Royal Group in ANZ Royal Bank, established WING in Cambodia in 2009.
ACLEDA Bank’s Unity hit the market in 2010, followed by CamGSM’s Cellcard Cash last year. CamGSM is owned by Royal Group.
Unity, which now requires users to hold an ACLEDA account, saw a 547 per cent increase in cash flow in 2011, with more than $64 million in total transactions, according to ACLEDA senior vice president for marketing Sok Sophea.
Digital cash services in Cambodia showed marked increases in users and cash flow in 2011, and still more growth is expected this year as operators launch new services and partnerships to capture a large but still-untapped rural market.
The services, in which customers transfer money via their mobile phones, have in a few short years formed a fledgling market in the Kingdom with about 400,000 users, according to the National Bank of Cambodia.
Australian and New Zealand Banking Group Ltd, which has a partnership with domestic conglomerate Royal Group in ANZ Royal Bank, established WING in Cambodia in 2009.
ACLEDA Bank’s Unity hit the market in 2010, followed by CamGSM’s Cellcard Cash last year. CamGSM is owned by Royal Group.
Unity, which now requires users to hold an ACLEDA account, saw a 547 per cent increase in cash flow in 2011, with more than $64 million in total transactions, according to ACLEDA senior vice president for marketing Sok Sophea.
March 2, 2012
Prasac seeks commercial bank status
[PHNOM PENH POST]
PRASAC, Cambodia’s largest microfinance institution by outstanding
loans, planned to become a licensed commercial bank in the Kingdom,
company officials said yesterday.
The news comes despite calls from insiders and experts – most recently the International Monetary Fund and World Bank – for the National Bank of Cambodia to stop issuing new licenses for commercial banks.
Prasac was preparing its core banking system, management and infrastructure for the transition, and targeting a launch date in 2013 or 2014, General Manager Sim Senacheert told the Post.
The news comes despite calls from insiders and experts – most recently the International Monetary Fund and World Bank – for the National Bank of Cambodia to stop issuing new licenses for commercial banks.
Prasac was preparing its core banking system, management and infrastructure for the transition, and targeting a launch date in 2013 or 2014, General Manager Sim Senacheert told the Post.
March 1, 2012
IMF advises Cambodia's central bank to halt licenses to new banks
[XINHUA]
PHNOM PENH, Feb. 28 -- The International Monetary Fund (IMF) advised the National Bank of Cambodia (NBC) not to grant licenses to new banks to strengthen the supervision and health of the country's existing banks, said the Fund's in a press release issued on Tuesday.
"For Cambodia, the main challenge ahead is building a deeper financial system while safeguarding financial stability," the Fund said after the IMF Executive Board Concluded 2011 Article IV Consultation with Cambodia earlier this month.
"Amid a rapidly growing banking system, a moratorium on bank licenses would provide a critical window to build adequate supervisory capacity and improve the balance between the degree of competition and health of banks."
The country, with the population of 14.5 million, currently has 32 commercial banks, seven specialized banks, 32 microfinance institutions and 29 rural credit operators, according to the NBC's report, adding that the banking industry has the total current asset of 7.94 billion U.S. dollars by the end of last year.
PHNOM PENH, Feb. 28 -- The International Monetary Fund (IMF) advised the National Bank of Cambodia (NBC) not to grant licenses to new banks to strengthen the supervision and health of the country's existing banks, said the Fund's in a press release issued on Tuesday.
"For Cambodia, the main challenge ahead is building a deeper financial system while safeguarding financial stability," the Fund said after the IMF Executive Board Concluded 2011 Article IV Consultation with Cambodia earlier this month.
"Amid a rapidly growing banking system, a moratorium on bank licenses would provide a critical window to build adequate supervisory capacity and improve the balance between the degree of competition and health of banks."
The country, with the population of 14.5 million, currently has 32 commercial banks, seven specialized banks, 32 microfinance institutions and 29 rural credit operators, according to the NBC's report, adding that the banking industry has the total current asset of 7.94 billion U.S. dollars by the end of last year.
February 28, 2012
Cambodia looks to banking and agriculture to spur growth
[CHANNEL NEWS ASIA]
Cambodia: Garment-making has been a mainstay of Cambodia's fledgling economy, chalking up between 6 and 7 percent annually for the past four years.
But, the country is turning its focus back to the land in the hope that rice growing and other farming produce, will lift growth closer to 8 percent, making it among the world's fastest growing economies.
A contrast to and the yearly average GDP growth rate of 7.7 percent over the last ten years, according to the IMF.
Cambodia's central bank expects economic growth in 2012 to accelerate to its fastest pace in four years.
"One of the priority sector of the government is to develop the agriculture" said Nguon Sokha, Director General, National Bank of Cambodia.
"At the moment, growth is driven by the garment sector, tourism sector and construction. Cambodia is an agriculture land so we need to develop based on our natural resource."
Cambodia: Garment-making has been a mainstay of Cambodia's fledgling economy, chalking up between 6 and 7 percent annually for the past four years.
But, the country is turning its focus back to the land in the hope that rice growing and other farming produce, will lift growth closer to 8 percent, making it among the world's fastest growing economies.
A contrast to and the yearly average GDP growth rate of 7.7 percent over the last ten years, according to the IMF.
Cambodia's central bank expects economic growth in 2012 to accelerate to its fastest pace in four years.
"One of the priority sector of the government is to develop the agriculture" said Nguon Sokha, Director General, National Bank of Cambodia.
"At the moment, growth is driven by the garment sector, tourism sector and construction. Cambodia is an agriculture land so we need to develop based on our natural resource."
MFIs claim efforts to help flood victims
[PHNOM PENH POST]
Cambodia's microfinance industry yesterday responded to Prime Minister
Hun Sen’s call to aid farmers affected by the worst floods in a decade
by claiming lenders were already taking steps to offer relief.
About 350,000 Cambodians were affected by floods that swept through large areas of the country between September and November last year, Hun Sen said during a speech on Tuesday at the Ministry of Rural Development.
As a result, thousands were struggling to repay loans to MFIs.
About 350,000 Cambodians were affected by floods that swept through large areas of the country between September and November last year, Hun Sen said during a speech on Tuesday at the Ministry of Rural Development.
As a result, thousands were struggling to repay loans to MFIs.
February 20, 2012
Bank of Tokyo opens Phnom Penh office
[PHNOM PENH POST]
Japan's second-largest bank, Bank of Tokyo-Mitsubishi UFJ, officially opened a represent-ative office in Phnom Penh on Friday.
The office would serve as an information centre for potential investors and hoped to attract more Japanese companies, Masato Miyachi, general manager of the bank’s Asia and China division, said.
“We will further development in Cambodia by offering effective information geared towards the needs of our Japanese customers,” Miyachi said.
The office would serve as an information centre for potential investors and hoped to attract more Japanese companies, Masato Miyachi, general manager of the bank’s Asia and China division, said.
“We will further development in Cambodia by offering effective information geared towards the needs of our Japanese customers,” Miyachi said.
February 17, 2012
ANZ Bank: Higgins on business, policy
[PHNOM PENH POST]
ANZ Royal CEO Stephen Higgins sat down with Post business reporter Don
Weinland this week to discuss banking and business in Cambodia, as well
as the country’s government policy.
Higgins will leave his post at ANZ Royal this month but says he will stay in the country.
What can the National Bank of Cambodia (NBC) do to relieve the banking sector of over saturation?
There should be a cap on the number of bank licences. New banks should be forced to buy an existing licence. That way it helps clean up some of the small players that frankly don’t do much in the market here. We never see them out there. We don’t know what their reason for being here is. The NBC still needs to supervise them. It means [the NBC] needs resources to do that ... I wouldn’t have thought you would need many more than 10 [banks] in this market.
Higgins will leave his post at ANZ Royal this month but says he will stay in the country.
What can the National Bank of Cambodia (NBC) do to relieve the banking sector of over saturation?
There should be a cap on the number of bank licences. New banks should be forced to buy an existing licence. That way it helps clean up some of the small players that frankly don’t do much in the market here. We never see them out there. We don’t know what their reason for being here is. The NBC still needs to supervise them. It means [the NBC] needs resources to do that ... I wouldn’t have thought you would need many more than 10 [banks] in this market.
Tax intake rises but opposition claim losses
[PHNOM PENH POST]
Cambodia's tax revenue rose by 12 per cent to US$575 million year-on-year in 2011, according to data from the Ministry of Economy and Finance (MEF).
The rise was due partly to increased collections of profit taxes, excise taxes and duties totalling $13 million, says MEF Secretary of State Hang Chuon Naron.
He said other increased taxations contributed as well, with property tax collections alone totalling $12 million last year.
“We are trying to increase tax collections in order to increase revenues and the national budget,” he said.
Son Chhay, a national assembly member of the Sam Rainsy Party, said that Cambodia loses millions each year on negligent tax and excise revenue collection.
“We have lost between 25 to 35 per cent of tax revenue each year at the hands of customs officers because they don’t look at the exact number of products. They just try to collect a target set by the Ministry of Economy and Finance,” he said.
Cambodia's tax revenue rose by 12 per cent to US$575 million year-on-year in 2011, according to data from the Ministry of Economy and Finance (MEF).
The rise was due partly to increased collections of profit taxes, excise taxes and duties totalling $13 million, says MEF Secretary of State Hang Chuon Naron.
He said other increased taxations contributed as well, with property tax collections alone totalling $12 million last year.
“We are trying to increase tax collections in order to increase revenues and the national budget,” he said.
Son Chhay, a national assembly member of the Sam Rainsy Party, said that Cambodia loses millions each year on negligent tax and excise revenue collection.
“We have lost between 25 to 35 per cent of tax revenue each year at the hands of customs officers because they don’t look at the exact number of products. They just try to collect a target set by the Ministry of Economy and Finance,” he said.
February 15, 2012
Japanese bank tests Kingdom’s waters
[PHNOM PENH POST]
Japan's Sumitomo Mitsui Banking Corporation yesterday opened a representative office in Phnom Penh in the latest Japanese bid to expand investments and pursue Cambodia’s still untapped markets.
Cambodia’s location at the very heart of the Greater Mekong Sub-Region (GMS) is enticing to foreign companies, General Manager of Planning at SMBC Hiroshi Irie said.
“Japanese banks are now coming back to Cambodia after 45 years. Cambodia is located in the centre of the GMS, which is a strategic position for trading in the region,” he said.
Chairman of the Japanese Business Association of Cambodia Hiromitsu Iwatate said that SMBC’s new opening reflected a growing trend amongst Japanese businesses looking to expand in Cambodia.
“Japanese companies have been increasing sharply in Cambodia over the last three years. It has risen from 50 companies [in 2009] to 100 now, even though the numbers remain small compared to Thailand and Vietnam.”
Japan's Sumitomo Mitsui Banking Corporation yesterday opened a representative office in Phnom Penh in the latest Japanese bid to expand investments and pursue Cambodia’s still untapped markets.
Cambodia’s location at the very heart of the Greater Mekong Sub-Region (GMS) is enticing to foreign companies, General Manager of Planning at SMBC Hiroshi Irie said.
“Japanese banks are now coming back to Cambodia after 45 years. Cambodia is located in the centre of the GMS, which is a strategic position for trading in the region,” he said.
Chairman of the Japanese Business Association of Cambodia Hiromitsu Iwatate said that SMBC’s new opening reflected a growing trend amongst Japanese businesses looking to expand in Cambodia.
“Japanese companies have been increasing sharply in Cambodia over the last three years. It has risen from 50 companies [in 2009] to 100 now, even though the numbers remain small compared to Thailand and Vietnam.”
Govt backs rice loans
[PHNOM PENH POST]
The government plans to step in as a guarantor between Cambodia’s
commercial banks and the capital-starved rice sector, officials
confirmed yesterday.
The Ministry of Economy and Finance plans to guarantee US$25 million as collateral for loans to rice millers, Kalyan Mey, an advisor at the Supreme National Economic Council, said yesterday.
Cambodia’s rice millers often lack the capital to purchase large quantities of paddy rice or build rice processing plants.
They also fall short on the collateral needed in order to secure loans from commercial banks.
The Ministry of Economy and Finance plans to guarantee US$25 million as collateral for loans to rice millers, Kalyan Mey, an advisor at the Supreme National Economic Council, said yesterday.
Cambodia’s rice millers often lack the capital to purchase large quantities of paddy rice or build rice processing plants.
They also fall short on the collateral needed in order to secure loans from commercial banks.
February 14, 2012
State loan for local cassava processor
[PHNOM PENH POST]
State-owned Rural Development Bank (RDB) has loaned a domestic cassava processor and exporter US$1 million in a bid to tame instability in the market for the crop, the bank said.
Loan recipient Power Unity Cambodia Investment Ltd will use the loan to buy cassava from Cambodian farmers and then export to China.
Cassava farmers, especially those in the Kingdom’s northeast, have expressed concern on unstable crop orders primarily from Thailand.
Prices for the plant soared in early to mid 2011, and farmers scraped other crops such as corn for the more lucrative cassava. Thai border regulations and oversupply in Thailand, however, have left many cassava fields in Cambodia unharvested, the Post reported.
Power Unity could not be reached yesterday but the Post reported in January that the company planned to export 300,000 tonnes of cassava to China this year.
State-owned Rural Development Bank (RDB) has loaned a domestic cassava processor and exporter US$1 million in a bid to tame instability in the market for the crop, the bank said.
Loan recipient Power Unity Cambodia Investment Ltd will use the loan to buy cassava from Cambodian farmers and then export to China.
Cassava farmers, especially those in the Kingdom’s northeast, have expressed concern on unstable crop orders primarily from Thailand.
Prices for the plant soared in early to mid 2011, and farmers scraped other crops such as corn for the more lucrative cassava. Thai border regulations and oversupply in Thailand, however, have left many cassava fields in Cambodia unharvested, the Post reported.
Power Unity could not be reached yesterday but the Post reported in January that the company planned to export 300,000 tonnes of cassava to China this year.
February 13, 2012
Cambodia’s first micro-life insurance firm opens
[PHNOM PENH POST]
Previor Kampuchea Micro-life Insurance Plc (PKMI), a subsidiary of Groupe PREVOIR (GP), officially became the first micro-life insurance company in Cambodia when it opened last Friday.
Keat Chhon, the minister of economy & finance, said the company’s offer is a milestone towards helping Cambodians in low-income, rural areas.
“PKMI will participate in reducing the poverty in Cambodia by offering and promoting products that insure access to health care for Cambodians with low-income,” he said, adding that the company has received the full support from his ministry.
“GP has looked at the potential Cambodian micro-insurance market for the last couple of years. We are the first and only licensed micro-insurer to open a new page in the Cambodian insurance industry,” said chairperson Cecile Gerard.
Previor Kampuchea Micro-life Insurance Plc (PKMI), a subsidiary of Groupe PREVOIR (GP), officially became the first micro-life insurance company in Cambodia when it opened last Friday.
Keat Chhon, the minister of economy & finance, said the company’s offer is a milestone towards helping Cambodians in low-income, rural areas.
“PKMI will participate in reducing the poverty in Cambodia by offering and promoting products that insure access to health care for Cambodians with low-income,” he said, adding that the company has received the full support from his ministry.
“GP has looked at the potential Cambodian micro-insurance market for the last couple of years. We are the first and only licensed micro-insurer to open a new page in the Cambodian insurance industry,” said chairperson Cecile Gerard.
February 11, 2012
Kingdom’s loans rise 33%, deposists 20%
[PHNOM PENH POST]
Loan and deposits across 31 banks in Cambodia rose 33.5 per cent and 20.4 per cent in 2011 year-on-year, respectively, official data from the National Bank of Cambodia (NBC) shows.
The data shows the total amount of loans from all banks reached US$4.07 billion, with the total number of borrowers 294,533 and depositors numbering 1,266,412. “The sectors that contributed to this high growth were agriculture, industry, construction and commercial,” NBC governor Chea Chanto said during the bank’s annual meeting yesterday.
“These indicators increased the confidence and support of foreign investors in the banking ind-ustry, as well as the government’s economic development policy,” he said.
Across microfinance institutions, loans rose 46 per cent to $644 million and 1,141,913 customers, with deposits rising $116 million to 242,116 depositors.
Loan and deposits across 31 banks in Cambodia rose 33.5 per cent and 20.4 per cent in 2011 year-on-year, respectively, official data from the National Bank of Cambodia (NBC) shows.
The data shows the total amount of loans from all banks reached US$4.07 billion, with the total number of borrowers 294,533 and depositors numbering 1,266,412. “The sectors that contributed to this high growth were agriculture, industry, construction and commercial,” NBC governor Chea Chanto said during the bank’s annual meeting yesterday.
“These indicators increased the confidence and support of foreign investors in the banking ind-ustry, as well as the government’s economic development policy,” he said.
Across microfinance institutions, loans rose 46 per cent to $644 million and 1,141,913 customers, with deposits rising $116 million to 242,116 depositors.
Banks sign agreement with finance ministry
[PHNOM PENH POST]
ACLEDA and Canadia Bank have signed an agreement with the Ministry of Economy and Finance (MEF) to introduce a public financial reform management system in 17 provinces.
It was the third time ACLEDA had signed such an agreement with the MEF, and the second time Canadia had signed it. The first agreement was made in December, 2004 and the second was signed in December, 2008.
Aun Porn Moniroth, secretary of state for MEF, said the agreement would support financial accountability and push forth a highly efficient public financial management. “[This] public financial management reform is a significant step towards building a financial system of government to achieve noticeable growth and trust in the national budget,” he said.
The initiative would help deliver more jobs to the private sector and accelerate Cambodia’s economic development, Canadia Bank chairman of directors Pung Kheav Se said. “Powerful countries with advanced economies tend to offer some works to the private sector in order to reduce the state’s expenses,” he said.
ACLEDA and Canadia Bank have signed an agreement with the Ministry of Economy and Finance (MEF) to introduce a public financial reform management system in 17 provinces.
It was the third time ACLEDA had signed such an agreement with the MEF, and the second time Canadia had signed it. The first agreement was made in December, 2004 and the second was signed in December, 2008.
Aun Porn Moniroth, secretary of state for MEF, said the agreement would support financial accountability and push forth a highly efficient public financial management. “[This] public financial management reform is a significant step towards building a financial system of government to achieve noticeable growth and trust in the national budget,” he said.
The initiative would help deliver more jobs to the private sector and accelerate Cambodia’s economic development, Canadia Bank chairman of directors Pung Kheav Se said. “Powerful countries with advanced economies tend to offer some works to the private sector in order to reduce the state’s expenses,” he said.
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