Foreign banks are pouring into Cambodia’s microfinance sector
By Hor Kimsay
There has been a growing wave of international interest in the Kingdom’s micro-finance institutions (MFIs) as many of the lenders sell major stakes to large foreign banks.
When Samic Microfinance sold its entire operation to South Korea-based NongHyup Bank late last month, Samic’s CEO King Kap Kalyan said the decision was due to rising competition within the country’s financial industry.
He said the current market requires operators to have stronger sources of capital in order to thrive.
“The [previous] shareholders had limited ability to expand in the market, so we needed to walk out and allow new owners with strong financial abilities to come in and strengthen competitiveness in the current market,” Kalyan said.
Photo courtesy of aaron gilson.