THE Kingdom is to welcome its 28th commercial bank when Malaysia's Hwang-DBS (Malaysia) Bhd starts operations at the end of July.
The news was contained in a June 29 filing to the Malaysian stock exchange, which stated that the parent company had been approved for a licence by the National Bank of Cambodia, the nation's central bank and regulator.
"Further to the announcement made on 15 January 2009, the Board of Hwang-DBS (Malaysia) Berhad wishes to announce that the Minister of Commerce of Cambodia had on 26 June 2009 issued a certificate of incorporation of Hwang-DBS Commercial Bank Plc HDCB, which is effective from 19 June 2009," the filing stated.
HDCB will start operating by July 31, subject to its final licence being issued by the NBC.
Minister of Commerce ... on 26 June ... issued a certificate of incorporation.
The group's communications director at Hwang-DBS Investment Management, Lynn Guha Thakurta, told the Post in an email the bank would make a full announcement by the end of July and would not comment further at this time.
The filing to the Malaysian bourse stated that HDCB is a wholly owned subsidiary and will operate as a commercial bank in Cambodia.
HDCB currently has issued and paid up capital of US$2, being two ordinary shares of $1 each.
The issued and paid-up capital of HDCB will be increased to US$20 million comprising 20 million ordinary shares of $1 each. They will be issued to the parent company before HDCB begins operating.
Neav Chanthana, the NBC's deputy governor, said Tuesday she was not certain about the presence of the prospective new bank since it was not part of her portfolio.
"But more foreign banks will bring more investors," she said. "Also the rising number of foreign banks reflects their confidence in our banking system, and especially in government policy, or they won't come here."
Tal Nay Im, the NBC's director general, was in South Korea on Tuesday and was not available for comment.