Modernization of Banking and Microfinance Industry

By Soy Sophea

The National Bank of Cambodia has hosted the “Modernization of the Banking and Microfinance Industry in Cambodia 2009”. The forum kicked off at the Naga World Hotel in Phnom Penh on February 19 and was jointly organized by the National Information Communications Technology Development Authority and the International Data Group (IDG).

Neav Chanthana, Deputy Governor of the National Bank of Cambodia, said the government of Cambodia has established banking laws and other relevant regulations to ensure the smooth workflow of private bank operations in Cambodia. She realized that there has been a boom in private banking in the Kingdom and they must provide the best of financial services to their clients.

Tam Le, Managing Director and Chief Representative of IDG Vietnam and Indochina said the event attracted participation from 20 local and international speakers, 40 sponsors and exhibitors and more than 400 conference attendees, as well as thousands of trade visitors. He added that 12 keynote speakers were present during the 2-day event.

“Banking Cambodia will soon become the most significant banking and finance event in the nation, just as we have achieved with banking events in other countries,” he said.

With supervision by the Government and support from donor organizations such as the Asian Development Bank (ADB) and the World Bank, the banking and microfinance sector in Cambodia is growing healthily, and has contributed to the country’s economic growth in recent years, according to Tam Le.

He said enterprises and individuals have received financial help and assistance through loans from the banks and microfinance institutions which enabled them to expand and reinvest profits. The pro-business investment climate in Cambodia has attracted more investors to inject funds and increase assets in the country resulting in public confidence in the banking and financial system.

As Cambodia takes its place amongst the emerging economies, having joined as a member of the World Trade Organization, it is essential that the government and banking and financial sector speed up modernization and innovation to facilitate further integration with global business and financial markets.

Banking and Microfinance Cambodia 2009 which marks the first of an annual series of conferences and exhibitions for the Banking and Microfinance industry serves as an ideal platform for the exchange of the latest ideas, best practices, ICT innovations and solutions. It is a summit meeting for Government Ministries and Agencies, local and regional banks and financial institutions, especially microfinance institutions, technology solution providers, and everyone who is involved in the industry. These stakeholders recently met up and exchange expertise and experience in banking innovation and modernization and share experiences gleaned from similar economies and situations.

The conference is especially timely, set amidst the global economic crisis. It will spur Government policy makers, Central Bank regulators and supervisors, the banking and financial community leaders to sit together to find solutions to the current challenges.

The two-day conference commenced with a presentation on “Cambodia: Recent Economic and Monetary Policy Developments”. On day two, February 20, the Conference focused on the Microfinance sector in Cambodia. Mr. Qimiao Fan, Country Manager, World Bank, Cambodia presented the speech on the Banking Industry’s Role in Cambodia’s Economic Development.

The highlight of the Conference is a forum on “Obtaining Financing for Business Survival and Growth: What the Banks can do during the Financial Crisis”. The forum will also discuss the role of State Institutions, Donor Organizations and NGOs in making business loans. This forum, in the form of a panel discussion was held as the grand finale of the event. This is the most-anticipated activity of Banking and Finance Cambodia 2009 because it gathers authorities from NBC, the Advanced Bank of Cambodia (ABC), the World Bank (WB), the International Finance Cooperation (IFC), the Cambodia Microfinance Association (CMA) and other international banking and finance experts to discuss macro economic and specific issues affecting the banking industry in Cambodia.