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New MFI enters jam-packed local market

May Kunmakara / Khmer Times Share:
A woman holds US dollar and riel notes in a market in Phnom Penh. Reuters/Pring Samrang

Chinese-owned microfinance institution Khmer Capital officially joined Cambodia’s crowded financial industry yesterday, becoming the 67th MFI to operate in the country.

Liang Chia-Rong, Khmer Capital’s managing director, said during the launching ceremony that they have been working for months to comply with requirements from the National Bank of Cambodia.

“We are not a big company so we will surely face a lot challenges and competition from the numerous MFIs already in the market, but we will try to play a critical role for the development of Cambodia’s financial sector,” Mr Liang said “I do believe that we will become one of the main players in the Cambodian financial industry,” he added.

Rath Sovannorak, director-general for banking supervision at NBC, said that interest from companies like Khmer Capital in the local market is a strong sign that the Cambodian economy is thriving.

“This proves that foreign investors are quite confident in our economy, especially in the financial sector,” he said. “The impressive growth of the industry is evident when we consider the number of microfinance institutions operating here, as well as the size of their operations and the range of financial products.”

Mr Rath said that Cambodian MFI’s fixed assets rose by 29 percent during the third quarter of the year, compared to the same quarter in 2016. Loans and deposits went up by 36 and 38 percent respectively.

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