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Asia-Pacific

First Chinese commercial bank to open branch in Cambodia

(Xinhua)
Updated: 2010-06-10 17:23
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PHNOM PENH -?Bank of China (BOC) has been given the approval in principle by the National Bank of?Cambodia (NBC) to open its branch in Phnom Penh, Thai Saphear, deputy director of the NBC's cabinet and head of the NBC?governor's office, said Thursday.

Thai Saphear said that NBC's Governor Chea Chanto told the new Chinese ambassador to Cambodia Pan Guangxue during a ?meeting on Wednesday that NBC has approved in principle for the Bank of China to open branch in Cambodia.

Moreover, the governor also suggested the ambassador to try to attract more commercial banks from China to invest in Cambodia in order to boost the development of the economy of Cambodia.

It would be the first commercial bank from China in Cambodia.

According to the NBC's rule, after the approval in principle, the bank has six months to fill the requirements of registered capital, location, staff and statutes before getting the operating license.

Currently, Cambodia has 27 commercial banks. Early last month, CIMB of Malaysia and Agribank of Vietnam have been approved ?in principle to open branch in Cambodia.

The Agribank of Vietnam may open its branch in Cambodia late this month and CIMB would open its branch in Phnom Penh at the end of this year.

Analysts said that new banks would bring Cambodia new capital, new high-technology to develop Cambodia economy; however, there will be tougher competition among the players as there are a lot of banks in the small extent of economy of Cambodia.

Bank of China is the most internationalized commercial bank in China, the bank said on its website. BOC London Branch, the first overseas branch of the Chinese banks, was established in 1929. From then on, the Bank successively opened branches in?global financial centers, and has built up its network in 27 countries and regions. Currently, it had over 10,000 domestic operations and over 600 overseas operations, according to the website of BOC.

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