Logo of Phnom Penh Post newspaper Phnom Penh Post - New moves to boost banking



New moves to boost banking

New moves to boost banking

C ambodia's National Bank has announced plans to launch treasury bills and

introduce electronic funds transfers to boost the banking sector.

"We

have not yet decided what are going to be the technical characteristics of those

instruments, but they will definitely be the first riel-denominated asset that

will be offered to savers," said National Bank Deputy Governor Tioulong

Saumura.

"This will be one way to mobilise savings, both institutional

savings as well as private," said Tioulong, speaking at the Foreign

Correspondents Clubs of Cambodia on June 21.

She said the proposal had

already been approved by the cabinet and the bank expected the new bills to be

introduced soon, while plans to set up a clearing system were in the

pipeline.

She also said Cambodia was looking at electronic funds transfer

methods via debit cards to be used instead of cheques.

Tioulong said

there had been important improvements in the sector in terms of strengthening

the supervisory role of the National Bank but most of the 28 licensed foreign

and Cambodian-owned commercial banks still deal in foreign currency.

"The

society is not overbanked, the society is underbanked to the extent that it

doesn't use enough the banking services which a modern country

uses."

"The banking industry, for the time being, does not contribute

much to the local economy - to the disappointment of the public authorities.

They (banks) have not yet reached the level with which we would be happy," the

Paris-trained deputy said.

Cambodians are still suspicious of banks,

which together with the use of money were abolished by the Khmer Rouge regime in

the 1970s, and the vast majority prefer to keep their savings at home in cash or

gold. Most of the commercial banks were opened during the early 1990s and do not

provide deposit or loan facilities, and many of the banks are alleged to be

fronts for money laundering.

MOST VIEWED

  • Phnom Penh unveils rules for post-lockdown transition

    The Phnom Penh Municipal Administration issued a set of detailed guidelines for the seven days to May 12 after the capital emerges from lockdown at the onset of May 6. In the 14-page document signed by municipal governor Khuong Sreng released on the evening of May 5, the

  • SBI LY HOUR Bank Launches Cross Border Money Transfer Service between Cambodia and Vietnam on RippleNet, utilizing DLT

    SBI LY HOUR Bank Plc and Hanoi-based Tien Phong Commercial Joint Stock Bank (TPBank) on Friday launched the first Cambodia-Vietnam money transfer service in real currency via RippleNet, provided by SBI Ripple Asia Co Ltd to provide safe, fast and convenient services. SBI LY HOUR

  • Gov’t issues guidelines as lockdown nears end

    The government has issued a five-page set of instructions to be enforced when the three-week lockdown of Phnom Penh and adjacent Takmao town in Kandal province ends on May 6. According to an announcement signed by Prime Minister Hun Sen on May 4, the instructions cover a

  • Cambodia ready to exit LDC status

    Cambodia is well-prepared to minimise economic risks when it graduates from its Least Developed Countries status, according to a senior official at the Ministry of Commerce on May 7. Four LDCs – Cambodia, Laos, Bangladesh and Nepal – met at a virtual workshop last week to explore potential

  • Nine US franchises eye Cambodia debut

    Nine famous US franchising companies are looking for business opportunities and expansion into Cambodia to build a footstep for a strong foundation in Southeast Asia. The US embassy in Phnom Penh, in partnership with the US Foreign Commercial Service and with support from the American

  • Jab drive announced for two more Phnom Penh districts

    The Phnom Penh Municipal Administration on May 15 announced a first-dose novel-coronavirus vaccination campaign for Boeung Keng Kang and Sen Sok districts from May 18-31, and a follow-up second-shot drive from June 1-15. Twenty vaccination sites have been set up in a combined 13 communes across both