Logo of Phnom Penh Post newspaper Phnom Penh Post - NBC warns against unlicensed deposit schemes

NBC warns against unlicensed deposit schemes

Content image - Phnom Penh Post
The head office of the National Bank of Cambodia in Phnom Penh. Vireak Mai

NBC warns against unlicensed deposit schemes

The National Bank of Cambodia issued a letter on Wednesday clarifying that only seven microfinance institutions (MFIs) are licensed to accept deposits from the public.

The notification came after the central bank noticed several “rural credit operators” – institutions smaller than a typical MFI that are often licensed to issue loans but not accept deposits – were advertising deposit services without permission from the bank.

The letter does not name those institutions.

“Some rural credit operators that have transformed from NGOs are approaching the public to put deposits in the form of borrowing contracts, with a promise that they will offer a high interest rate,” the letter says.

“Aside from the above seven MFIs, other MFIs and rural credit operators, [even though] they are under control of the National Bank, are not allowed to accept deposits from the public in any form.”

The seven MFIs licensed to accept deposits are VisionFund, Prasac, Hattha Kaksekar, AMK, Kredit, Amret, and LOLC.

MOST VIEWED

  • ‘Education’ a priority traffic-law penalty

    A top National Police official on June 21 neither rejected nor confirmed the authenticity of a leaked audio message, which has gone viral on social media, on a waiver of fines for a number of road traffic-related offences. General Him Yan, deputy National Police chief in

  • Pursat Ford assembly plant opens

    The Kingdom’s first Ford assembly plant was inaugurated on June 16 in Pursat province amid rising demand for brand-new vehicles among Cambodians. The facility is seen as a game changer for the domestic automobile industry, which could bring a wave of investors seeking to cash

  • Siem Reap’s $18M zoo said to educate public, help wildlife

    Angkor Wildlife and Aquarium Co Ltd has invested $18 million in a zoo in Siem Reap province, which will be opened in October to educate and promote animal conservation as well as attract national and international tourists. Currently, the Angkor Wildlife and Aquarium is building the

  • Volunteer scheme to foster ‘virtuous’ humanitarian spirit

    A senior education official said volunteer work contributes to solidarity and promotes a virtuous humanitarian spirit among the youth and communities. Serei Chumneas, undersecretary of state at the Ministry of Education, Youth and Sport, made the comment during the opening of a training programme called “

  • Angkor photo rules clarified

    The Apsara National Authority (ANA) denied that it had banned the use of camera tripods in the Angkor Archaeological Park, explaining that the confusion stemmed from a long-standing rule which required commercial photographers and videographers to apply for permission to film. The explanation followed a

  • $50B infrastructure plan en route

    The government’s upcoming $50 billion,10-year infrastructure master plan will provide tremendous investment opportunities for domestic and foreign entities, transport experts and economists say. Minister of Public Works and Transport Sun Chanthol revealed the plan to Japanese ambassador to Cambodia Masahiro Mikami on June 15. At