Surging ahead with Riel

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1) Is Campu Bank on track to meet the 10% loan in KHR denomi-nations being achieved by the set time line of this year?

Ans: Campu Bank has put in place measures to grow our Khmer Riel loans and is on track to meet the minimum ratio of 10% against total loans by end of 2019. In line with the initiative of the National Bank of Cambodia to de-doll-arise and to encourage the use of Khmer Riel in the country’s economy, the bank has continued to promote financial inclusion through its ongoing “My Neighbour, My Customer” campaign by educating the public on the importance of using Khmer Riel in their day-to-day business and also encouraging customers to take up Khmer Riel loans with competitive interest rates and terms e.g. longer tenor and lower fees as compared to loans in USD.

The Bank plans to roll out at least one new Khmer Riel deposit product in the 2nd quarter of this year to encourage the public to love and save in their national currency.

2) Has Campu Bank already moved along on this initiative even before the National Bank of Cambodia brought into effect this regulation?

Ans: In line with the ongoing de-dollarization initiative undertaken by the National Bank of Cambodia, the Bank had in 2016 launched our loan products in Khmer Riel in the market. Much effort have been made to promote the new product especially to the small and medium size enterprises and to the provincial and rural areas to enhance public awareness and benefits of using the local currency in business dealings.

3) What are the challenges which impedes the use of the KHR in the banking sector?

Ans: The main challenges which impede the usage of Khmer Riel in the banking sector are public awareness especially on the benefits of using Khmer Riel in the day-to-day businesses. Although fluctuation in the exchange rate to US Dollar is also of concern, the Khmer Riel is relatively stable against the US Dollar over the years.

4) What steps would your bank be under-taking to promote the usage of the KHR in its daily transactions?

Ans: To support the national agenda as well as the National Bank of Cambodia’s ongoing initiative to promote the use of Khmer Riel, the Bank has tied up with the General Department of Taxation to collect various types of taxes on behalf of the government and also with two large utility companies, the Electricite Du Cambodge and the Phnom Penh Water Supply Authority to collect electricity and water bills in Khmer Riel respectively.

Corporations and tax payers are encouraged to open current account or savings account in Khmer Riel to pay their tax obligations on timely basis.

As one of the pioneer financial institutions to introduce FAST payment or interbank fund transfer in Khmer Riel initiated by the National Bank of Cambodia, the Bank is aggressively promoting the service by encouraging customers to capitalize on the Bank’s ongoing offer of 50% discount on service charge for transfer of funds in Khmer Riel to another participating institution.

The Bank‘s ongoing promotion for Khmer Riel housing loans with attractive interest rate as low as 6.99% per annum for 1st year, 7.5% per annum for 2nd year and 7.99% per annum for 3rd year onwards and loan tenor of up to 25 years for purchase of houses under the Home Plan is one small step towards encouraging borrowers to borrow in Khmer Riel and use the local currency in their business dealings.

The Bank would be launching Campu Brightstar Children Savings Account in Khmer Riel in the 2nd quarter of 2019 to encourage the young to save and love their national currency.

5) Would the move to have a minimum of 10% affect your bank’s loan efforts? If so how? And if not, why?

Ans: The Bank is not impacted by the National Bank of Cambodia’s directive to achieve a minimum of 10% in the loans portfolio by end of 2019 as we have been very supportive of the Central Bank’s sound policies towards sustaining the country’s economic growth over the years. In fact, the Bank has embarked on a number of initiatives such as offering competitive interest rate and terms for Khmer Riel business and housing loans and encouraging customers to open Khmer Riel deposit accounts especially cheque accounts to settle their business transactions and utility bills and taxes in Khmer Riel.

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