Search

Search form

Logo of Phnom Penh Post newspaper Phnom Penh Post - Prasac moves towards becoming a bank

Prasac moves towards becoming a bank

Prasac moves towards becoming a bank

120710_09b
Prasac president and chief executive Sim Senacheert speaking with the Post earlier this year. Photograph: Vireak Mai/Phnom Penh Post

Prasac, a leading micro-finance institution in Cambodia, had increased its registered capital from US$3.8 million to $20 million in preparation for its transformation into a commercial bank by 2014, the institution said yesterday.

“This is one step in the process of registering to become a commercial bank,’’ Prasac president and chief executive Sim Senacheert said.

“The registration requirement of $37.5 million is a very small amount to become a bank.

“We don’t have any problem increasing our capital, as we have strong shareholders.”

Senacheert said the increase was also aimed at building the public’s confidence so they knew that Prasac had strong resources.

“Currently, Prasac’s total assets are nearly $180 million. Our current assets, which are high, are not very convenient for investors, depositors or borrowers. Thus we need to increase registered capital to increase public confidence as well as expand our business operations,” he said.

The increase in share capital was authorised by National Bank of Cambodia, and Prasac is in the process of amending the Memorandum of Article of Incorporation, according to its press release.

Late last month, Prasac installed 30 ATMs in many of its Phnom Penh branches. Those in the provinces are scheduled to go online this month or in early August.

Senacheert said the institution was preparing its IT system, infrastructure and management, and was studying new banking products.

As of June, Prasac had provided loans to 119,200 active borrowers, with more than $165 million of its loan portfolio outstanding.

There were 68,300 depositors, with more than $19 million in deposits outstanding.

To contact the reporter on this story: May Kunmakara at [email protected]

RECOMMENDED STORIES

  • Breaking: PM says prominent human rights NGO ‘must close’

    Prime Minister Hun Sen has instructed the Interior Ministry to investigate the Cambodian Center for Human Rights (CCHR) and potentially close it “because they follow foreigners”, appearing to link the rights group to the opposition Cambodia National Rescue Party's purported “revolution”. The CNRP - the

  • Rainsy and Sokha ‘would already be dead’: PM

    Prime Minister Hun Sen on Sunday appeared to suggest he would have assassinated opposition leaders Sam Rainsy and Kem Sokha had he known they were promising to “organise a new government” in the aftermath of the disputed 2013 national elections. In a clip from his speech

  • Massive ceremony at Angkor Wat will show ‘Cambodia not in anarchy’: PM

    Government officials, thousands of monks and Prime Minister Hun Sen himself will hold a massive prayer ceremony at Angkor Wat in early December to highlight the Kingdom’s continuing “peace, independence and political stability”, a spectacle observers said was designed to disguise the deterioration of

  • PM tells workers CNRP is to blame for any sanctions

    In a speech to workers yesterday, Prime Minister Hun Sen pinned the blame for any damage inflicted on Cambodia’s garment industry by potential economic sanctions squarely on the opposition party. “You must remember clearly that if the purchase orders are reduced, it is all