Logo of Phnom Penh Post newspaper Phnom Penh Post - International players coming, locals expanding

International players coming, locals expanding

International players coming, locals expanding

121102_06

Audit Partner Nge Huy at KPMG. Photograph: Anne Renzenbrink/Phnom Penh Post

Since 1994, when KPMG started business in Cambodia, the banking and finance sector in Cambodia has changed. “There has been a lot of progress and development in this field,” says Nge Huy, audit partner with KPMG.

He says the number of banks and micro finance institutions has been increasing and lately, international players are coming into Cambodia, through acquisition or merger with the existing local banks or micro finance institutions here.

While in the past Cambodian banks didn’t invest abroad, some local banks have started to expand their operations in other countries, such as Laos or Myanmar, according to Nge Huy.

He also said micro finance institutions are expanding to the rural areas. “So that means so far the rural people now have more access to finance compared to the past,” he says.

KPMG Cambodia offers service in the field of audit, tax and advisory. According to Nge Huy, financial sector audit it one of the strengths of KMPG in Cambodia and across the globe.

He says in Cambodia, the majority of KPMG’s work is within the audit, which is also required by the National Bank of Cambodia.

Auditing commercial banks and micro finance institutions requires a license by the National Bank of Cambodia. In Cambodia they have been working with a number of banks, both local and international ones.  

Nge Huy, a Cambodian national, started his career with KPMG Cambodia in 1997 after graduation. Besides KPMG, he is also the vice president of the Kampuchea Institute of Certified Public Accountants and Auditors.

According to Nge Huy, the US dollar is still the dominating currency within the commercial bank sector. He says the majority of the commercial banks are offering loans mainly in US dollar.

“But we have seen some changes through the microfinance sector,” he says.

“Because they are the ones operating within the rural areas so within the rural people and some of them are offering loans in Khmer riel rather than US dollar.”

Nge Huy says education is one of the challenges for the banking industry in Cambodia.

“The important matter is the trust and confidence among the users,” he says.

Studies, workshops, conferences, or seminars could educate the people to understand the benefits of using a bank account and disseminate the knowledge to the public. He says for that, the universities also play an important role.

Another challenge is the conversion of the existing Cambodian accounting standard to comply with the full international financial reporting standard, according to Nge Huy.

He said by 2016 all commercial banks and licensed micro finance institutions have to convert to IFRS, the International Financial Reporting Standard, which is adopted by Cambodia as well.

He says originally all commercial banks and license micro finance institutions had to comply with the conversion by 2012 but because of the complication of this standard, the national bank is requesting to delay the implementation to 2016.

“In order to comply with that there is a lot to do,” Nge Huy says.

To contact the reporter on this story: Anne Renzenbrink at [email protected]

MOST VIEWED

  • Proof giants walked among us humans?

    For years a debate has waged about whether certain bas relief carvings at the 12th-century To Prohm Temple, one of the most popular attractions at the Angkor Wat Temple Complex in Siem Reap province, depicted dinosaurs or some rather less exotic and more contemporary animal,

  • Japan bank buys major stake in ANZ Royal Bank

    Japan's largest bank acquired more than half of ANZ’s shares in Cambodia on Thursday, according to a statement from Kith Meng’s Royal Group. Japan's JTrust Bank, announced that they had acquired a 55% of stake in ANZ Royal Bank. According to a Royal Group

  • Long way to go before Cambodia gets a ‘smart city’

    Phnom Penh, Siem Reap and Battambang will struggle to attain smart city status without adopting far reaching master plans, according to officials tasked with implementing the program. The brainchild of the Association of Southeast Asian Nations (Asean), the smart city program seeks to link up

  • New US bill ‘is a violation of Cambodian independence’

    After a US congressmen introduced bipartisan legislation that will enact sanctions on Cambodian officials responsible for “undermining democracy” in the Kingdom, government officials and the ruling Cambodian People’s Party on Sunday said they regarded the potential action as the “violation of independence and sovereignty