The Singaporean commercial bank VIP, located along Monivong Boulevard in Phnom Penh, was shutting its door before offering any loans or receiving any deposits. The closure was because that the bank could not meet the government’s reserve requirement, local media reported.
VIP bank opened its operation in August and closed in December 2008. National Bank of Cambodia’s Director General, Tal Nai Im, told the Cambodia Daily that VIP bank’s commercial banking license was canceled in November when the bank volunteered to liquidate itself.
The government’s central bank appointed Morrison Kak & Associes to determine if the bank owns any outstanding rent, utility costs or other fees.
Kak Key, managing partner of auditor Morrison Kak & Associes, said that “his firm was appointed by the NBC in early December to conduct an audit of VIP bank,” adding that the bank’s audit would begin Jan 05 to March 2009. He added that the auditor will review all payables and receivables and publicize the bank’s closure in local newspapers, reported the Cambodia Daily.
“When everything’s done, we give a report to the National Bank of Cambodia that says everything is okey. And they erase VIP from their list of commercial bank,” said he.
Tough competition in the local market and the economic slowdown also played a role in the closure of VIP. Bankers said that the closure of VIP bank is not a sign of turmoil banks in Cambodian financial industry.
In Channy, president and chief executive officer of ACLEDA Bank, said Sunday that the tripling of registered capital requirements was not a serious concern because the NBC has given commercial banks until 2010 to comply, reported the Phnom Penh Post.
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