In the last decade, the growth of commercial banking system in Cambodia, local largest ACLEDA bank, Cambodian owner, is expanding its operation across Cambodia, and started setting up its branches in Lao to serve customers since July 2008 with three branches in Vientiane Capital, Savannakhet and Champasak province.
At the end of the year of 2009, ACLEDA bank will open a further two branches in Vientiane and Khammouan province and five post offices in Vientiane and two each in Savannakhet and Champasak.
“Bank operations in Laos and Cambodia are at the same level, there are just different laws and customs,” Managing Director and CEO Phon Narin, quoted by the Phnom Penh Post as saying.
“Customers [in Laos] are increasing by between 10 and 20 per day,” he said, adding that the bank had seen very low levels of loan no repayment.
After its first six months of operations, ACLEDA has 2,000 account holders in Laos with 360 borrowers, having loaned more than US$1.6 million. Speaking during his visit to Cambodia on Friday, Laos National Bank governor, Phouphet Khamphou Vong, said ACLEDA‘s would help alleviate poverty in his country and its expanding presence in Laos could also help efforts “among micro, small and medium enterprises to enlarge their businesses”, reported Phnom Penh Post.
On January 30, 2009 the delegation of Bank of the Lao PDR led H.E. Phouphet Khamphounvong, governor of Bank of the Lao PDR visited and acknowledged the development of ACLEDA bank in Phnom Penh. During the mission trip, the Laotian bank governor has signed on a memorandum about the counterpart cooperation with National Bank of Cambodia (NBC), and ACLEDA bank is the first choice as a development partner in Lao and enhanced cooperation with both ACLEDA bank in Lao and Cambodia.
Like Cambodians, most Laotians keep their money at home, said Phon Narin, noting that people in Laos had been quick to open deposit accounts and take out loans. In many cases, young people have already adapted to using ATM machines and Western Union Money Transfer, he said, according to the Phnom Penh Post.
President and CEO of ACLEDA, In Channy, presented to the delegation the development of ACLEDA bank that has rendered the financial services to customers and the public for 16 years throughout 226 branches and offices in all 24 provinces/towns in Cambodia and 3 branches in Laos with more than 800,000 customers who supported ACLEDA Bank and made ACLEDA Bank’s assets increase to more than US$690 million at the end of 2008.
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