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]

MOST VIEWED

  • Prince injured, wife dies after accident

    THE wife of former First Prime Minister Prince Norodom Ranariddh, Ouk Phalla, 39, died while the prince was “severely” injured following a road accident in Preah Sihanouk province’s Prey Nub district on Sunday morning, officials said. Rananriddh, who is also the president of the Funcinpec

  • Bun Heang mocks US, threatens its citizens in scathing open letter

    After being hit with sanctions from the US Department of Treasury, Cambodian General Hing Bun Heang said he would retaliate against any US national who does not respect his country’s sovereignty, has ambitions to invade Cambodia or incites “traitors” in the Kingdom to do

  • Ranariddh 'seriously injured', his wife dies in accident in Preah Sihanouk

    THE wife of former first prime minister Prince Norodom Ranariddh has died. Ouk Phalla succumbed to injuries sustained in a traffic accident on National Road 4 in Preah Sihanouk’s Prey Nub district this morning. She and the prince were immediately rushed to the Preah Sihanouk

  • US slammed over BGU head as Foreign Ministry says sanctions violate international principles

    The Ministry of Foreign Affairs and International Cooperation (MFAIC) has condemned the US Department of Treasury for its sanctions, announced on Tuesday, against Cambodian General Hing Bun Heang for his alleged role in infringing human rights. In a statement, the ministry said it is disturbing