Articles

Bank group backs up institutions under fire

In Banking on July 30, 2009 by viCheth

Phnom Penh Post, Thursday, 30 July 2009 15:01 Nathan Green

THE Association of Banks in Cambodia (ABC) said in a press statement late Wednesday that Canadia Bank and the Foreign Trade Bank of Cambodia (FTB) both had “strong and healthy financial positions”.

The release came a day after the banks were singled out on news blog KI Media as being in an “alarming situation” and in “serious trouble”, respectively.

KI Media’s unsourced entry said “the two financial institutions have been able so far to avoid bankruptcy thanks to a massive fund injection from the National Bank of Cambodia” and that “the fall of Cambodia’s two leading and intertwined commercial banks would lead to the collapse of the whole banking system”.

The ABC represents 19 commercial banks, six specialised banks and the Cambodia Microfinance Association, according to its Web site. Canadia Bank General Manager Pung Kheav Se was listed as ABC chairman in 2008.

It declined to comment further Wednesday, as did Canadia Bank. FTB General Manager Gui Anvanith could not be reached late Wednesday, and National Bank of Cambodia Director General Tal Nay Im did not return a request for comment.

According to the press release, Canadia Bank had $207.8 million in cash and cash equivalents as of June 30, $618.7 million in total assets and $486.1 million in deposits.

FTB had $150.1 million in cash and cash equivalents at the end of the first half, almost $250 million in total assets, and just over $208 million in customer deposits.

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