MB to set up commercial bank in Cambodia

Wednesday, Jul 20, 2022 10:58

Transactions at MBBank. — Photo courtesy of the bank

The State Bank of Việt Nam (SBV) has issued a written document allowing the Military Commercial Joint Stock Bank (MB) to establish a 100 per cent-owned bank in Cambodia on the ground of its branch in Phnom Penh.

Accordingly, MB Cambodia Bank, Public Limited Company (MBCambodia) is headquartered at No 146, Preah Norodom Avenue, Tonle Basak ward, Chamkar Mon district, Phnom Penh.

The MB is requested to carry out the procedures for opening the bank in accordance with the host country’s regulations and submit a report to the SBV within 14 working days before starting its operation.

Earlier in 2021, the MB announced its plan to convert its branch in Cambodia into a 100 per cent commercial bank. It also intended to transfer 36-39 per cent of the subsidiary’s charter capital to a foreign strategic partner to implement a new business strategy that focuses on developing the Micro Finance segment on a digital banking platform.

The establishment of the bank is expected to increase capital mobilisation, expand business activities in the Cambodian market, and improve the efficiency of the MB's equity. It will also be the foundation for the bank to strongly develop other financial services such as insurance and securities in the country.

Regarding its business results in the first six months of this year, MB CEO Colonel Lưu Trung Thái said that the group's revenue was approximately VNĐ29.9 trillion (US$1.2 billion) with a profit of VNĐ11.9 trillion. The bad debt ratio was at 0.94 per cent. — VNS

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