The National Bank of Cambodia has approved Taiwan’s Cooperative Bank to establish a branch in Phnom Penh, Taiwan’s Economic Daily News reported.

It would be the second Taiwanese bank to enter Cambodia’s banking sector, which experts have said is overcrowded. Taiwan’s Mega International Commercial Bank opened in early October, the Post reported.

There are reportedly 38 banks operating in the Kingdom. Cooperative Bank opened a branch in Australia earlier this year, part of an effort to expand its footprint overseas, according to the bank’s website.

The bank has 306 domestic and overseas branches in countries such as the Philippines, China and the United States, according to the website. Representatives from the bank were not available for comment yesterday.

Cai Youcai, president at the Mega International Commercial Bank, said at the bank’s opening that Taiwanese banks in Cambodia would encourage more Taiwanese investment in the county, while also providing financing to locals.