Despite the global financial crisis, the new Indian bank still starts operating its door in Cambodia following the South Korean bank-Kookmin- operated in Phnom Penh in the earlier this month. The opening of the bank of India is part of a growing interest from foreign banks that have sought to invest in the Cambodian economy, locally-English newspapers reported.
Cambodia’s commercial banks were not hit hardly by the world financial crisis because Cambodian banks do not depend on the foreign loans. Cambodia does not have its stock market.
Tay Nay Im, Director General of the National Bank of Cambodia, was quoted by the Cambodia Daily as saying that “I think this is a good sign, because when banks arrive here it means that the investors have confidence”
“They bring capital to the country, which helps our business community,” said she.
“Sacombank whose signs at its new branch sit covered in red sheets, has yet the NBC before its application is approved,” said Nal Im, quoting by the Daily.
“Opening of the bank of India’s first branch in the country was a positive sign at a time when most people are painting a gloomy,” said Saurey Ray, first secretary at the Indian embassy in Phnom Penh, reported newspapers.
“Many banks are coming at the moment, from Vietnamese banks to Korean banks. We are very thankful to the National Bank of Cambodia for all their help,” said Ray, adding that the opening of the branch is aimed at increasing India’s investments in Cambodia and, depending on its success, the bank will definitely be opening more branches.”
In an effort to tighten and strengthen the banking sector, the National Bank of Cambodia (NBC) has tripled the minimum capital requirement for commercial banks in Cambodia. Commercial banks reserves were raised from 50 billion riel (US$13 million) to 150 billion riel (US$36.5 million), and specialized banks reserves from 10 billion riel (US$2.5 million) to 30 billion riel (US$7.5 million).
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