Logo of Phnom Penh Post newspaper Phnom Penh Post - Cambodia Post Bank enters crowded sector

Cambodia Post Bank enters crowded sector

Cambodia Post Bank enters crowded sector

Cambodia Post Bank Plc opened its doors yesterday, becoming the newest player in an increasingly crowded industry.

Toch Chaochek, the bank’s chief executive officer, said the bank, which is partially owned by the country’s postal service, will target clients in micro and small to medium-sized enterprises (SMEs).

“We have a licence to operate as a commercial bank, but we are mainly concentrating on providing something similar to a microfinance institution,” Chaochek said. He added that loans range from as little as $300 to as much as $250,000.

The initial paid-up capital of $38 million is a joint investment. State-owned enterprise Cambodia Post is the smallest stakeholder, with five per cent. Canadia Bank Plc Canadia Investment Holding has 50 per cent, and Fullerton Financial Holdings, a subsidiary of Singapore corporation Temasek Holdings, owns a 45 per cent piece.

Gan Chee Yen, chief executive officer of Fullerton Financial, said his company has experience serving the micro and SME segment across Asia, and in comparison, access to funds here is limited.

“We are committed to sharing our capacities and building local skill that will help the financial services sector in Cambodia well into the future.”

Cambodia’s economic growth rate is forecast at seven per cent this year. The country has 34 licensed commercial banks, seven specialised banks and 37 microfinance institutions, according to the latest report from the central bank. In Channy, CEO of ACLEDA Bank, said that there’s still room for growth in the sector. Channy said the majority of banks are clustered in Phnom Penh, but demand for small loans in the provinces is high.

“Many SME owners still demand good financial services,” Channy said. “If they [banks] have good human resources, infrastructure, and enough capital, they still have a promising opportunity to grow.”

MOST VIEWED

  • Kingdom may hire Turkish power ship

    Cambodia is considering negotiating with Turkey to hire a 200MW-capacity power ship to meet electricity demands as the country faces an ongoing electrical shortage, according to the prime minister. Speaking to garment workers in Pursat province on Wednesday, Prime Minister Hun Sen said Electricite du

  • Woman who scaled Cambodia’s three highest peaks eyes Everest

    One of the very few Cambodian women to have successfully reached the Kingdom’s three highest peaks is now eyeing Malaysia’s tallest mountain, Mount Kinabalu, and potentially even the world’s tallest straddling Nepal and China, Mount Everest. While in many Western countries it

  • EDC tackles power shortfall

    Electrcite Du Cambodge (EDC) on Monday issued a statement updating the public on its efforts to tackle insufficient electricity supplies during the ongoing dry season. Reductions in electricity prices have resulted in a steady increase in consumers in the Kingdom, while local and international investors

  • Cheap, clean and efficient: The firm leading Cambodia’s solar revolution

    Sitting in her bright and airy 17th floor office, Rithya Menon, Okra Smart Solar’s lead firmware engineer, checks the frequently updating data telling her everything about how well their community services are operating. “I saw in the data that there was a problem with