Logo of Phnom Penh Post newspaper Phnom Penh Post - Bank ordered to replace its logo

Bank ordered to replace its logo

Acleda Bank’s current logo in Phnom Penh yesterday. Insert, Ministry of Economy and Finance logo. Wikimedia commons
Acleda Bank’s current logo in Phnom Penh yesterday. Insert, Ministry of Economy and Finance logo. Wikimedia commons Hong Menea

Bank ordered to replace its logo

ACLEDA Bank, Cambodia’s largest bank in terms of assets, will have to shell out millions in the next three weeks to comply with a Council of Ministers decision last Friday that the private financial institution must redesign and replace its logo on all company materials and products to differentiate itself from the Ministry of Economy and Finance, a senior bank executive said yesterday.

Acleda Bank CEO In Channy said the bank would shelve the mythological golden bird insignia it has used since 2003 when it became a commercial bank for a watered-down logo comprised purely of English and Khmer script.

He said his bank would comply with the government’s demands, which includes dropping the logo on all of its 259 locations in Cambodia, 41 branches in Laos and one in Myanmar. It will also change the logo on an additional 353 billboards across the region and all 1.7 million bank cards that the financial institution has issued.

The rebranding operation will cost about $3.5 million, or about 3 percent of the bank’s 2016 net profit, Channy estimated. He insisted, however, that the change of logo would not have any negative impacts on the bank’s operations.

“Customers know Acleda very well and trust our reputation as a professional institution,” Channy said, adding that he already informed shareholders and business partners about the imminent change.

“We are also satisfied with the new logo as we inserted Khmer script, so we can bring Cambodia’s identity to foreign countries and international markets,” he said.

The government’s justification over the change in the logo was handed down last Friday after the Council of Ministers concluded that the mythological golden bird on Acleda Bank’s logo was too similar to the logo of the Ministry of Economy and Finance, and that the public was confused as to whether or not the bank was a state institution.

Phay Siphan, spokesman of the Council of Ministers, explained yesterday that many Cambodians who borrowed money from Acleda Bank were incorrectly led to believe, due to the similarities of the logos, that they were indebted to the government.

The government must work to avoid this public confusion, and requiring Acleda Bank to change its logo is an example of how it can clear up the confusion, he said.

“We observed that people said they had borrowed money from the government while in fact they had taken loans from private institutions,” he said.

“The government doesn’t want to have to be involved in these issues because it should be the responsibility of loan-takers to understand what a private institution is,” he said.

The Council of Ministers decision follows an announcement by the central bank last Wednesday that said all financial institutions are required to visibly declare that they are a “Private Institution” and warned that it has reason to believe that some banks and microfinance institutions were using “propaganda” to influence consumer behaviour.

“The National Bank of Cambodia has observed that there are some bad people who do propaganda by cheating the public and who say that financial institutions in Cambodia are state-owned institutions, telling borrowers that they are not required to repay their debts,” the announcement said.

“Such propaganda negatively affects the development of Cambodian financial sector,” it added.

MOST VIEWED

  • Kingdom's Covid cluster cases jump to 194

    The Ministry of Health on February 25 confirmed 65 new cases of Covid-19, with 58 linked to the February 20 community transmission. The latest cluster cases include nine Vietnamese nationals, five Cambodians, one each from Korea, Singapore and Japan, with the rest being Chinese. This brings the total number

  • Locations shut, dozens more Covid-19 positive

    The Ministry of Health has closed 23 locations in connection with the February 20 community transmission of Covid-19 and summoned for testing anyone who had direct contact with affected people and places. The number of discovered related infections has risen to 76, including 39 women. In a press release,

  • Cambodia's Covid cluster cases rise to 137

    The Ministry of Health on February 24 recorded 40 more cases of Covid-19, with 38 linked to the February 20 community transmission. Of the 40, two are imported cases involving Chinese passengers. The 38 include two Vietnamese nationals and one Cambodian, with the rest being Chinese. This brings the total cases

  • Covid cluster raises alarm, health bodies urge vigilance

    The Ministry of Health and the World Health Organisation (WHO) in Cambodia have expressed great concern over the February 20 cluster transmission of Covid-19 in the community. Both entities appealed for vigilance and cooperation in curbing further spread of the virus. Ministry spokeswoman Or Vandine said

  • PM confirms third Covid-19 community transmission

    Prime Minister Hun Sen on February 20 announced the Kingdom's third outbreak of Covid-19 community transmission after 32 people tested positive in just over 10 hours. Addressing the public from his residence after an emergency meeting, Hun Sen said: "I dub it February 20 Community Event, in which 32 cases

  • Cambodia to make auto-rickshaws

    Locally-assembled electric auto-rickshaws could hit the Cambodian market as soon as early in May after the Council for the Development of Cambodia (CDC) gave the greenlight to an investment project at the weekend. According to a CDC press release, it will issue a final registration