In 2011-2012, the Kingdom of Cambodia was identified by at least a couple investment firms as a frontier market. While much risk still remains in the Cambodia economic landscape, private equity investors looking for opportunities for capital growth through the micro-loan or small to medium business development may want to consider the Land of Smiles.
Of course, the first questions any serious investor or business developer might wish to ask before sticking their toes in might include questions of (a) political risk and (b) stability of the banking sector. While the political climate in the Kingdom of Cambodia looks relatively stable, this hub highlights the stability of the banking sector and lists the top 10 banking institutions in the Cambodia banking sector.
1. Acleda Bank
Acleda Bank is Cambodia's largest bank with $6.06 billion in assets as according to the National Bank of Cambodia's annual Supervisory Report for 2011. The bank boasts an industry dominating 234 branches spread throughout the country and accounts for 18.9% share of the Cambodia banking sector market. Acleda Bank total assets grew by 27.8% over 2010 figures.
2. Canadia Bank PLC
Canadia Bank Plc ended 2011 as Cambodia's second largest bank in terms of total assets. The National Bank of Cambodia listed Canadia Bank as managing $5.28 billion in assets. Accordingly, Canadia Bank accounted for 16.5% of market share in the Cambodia banking sector.
3. Cambodian Public Bank
According to the 2011 NBC Report, Cambodia Public Bank was the third largest bank in Cambodia. Cambodian Public Bank is the largest foreign-owned bank and held $4.09 billion at the end of 2011. Established by Malaysian investors, Cambodian Public Bank accounted for 12.8% of Cambodia banking sector.
4. ANZ Royal Bank
At the end of 2011, ANZ Royal Bank listed as Cambodia's fourth largest bank. ANZ Royal is a subsidiary of ANZ from Australia and New Zealand with 55% foreign-owned and 45% owned by a Cambodia's Royal Group led by Kith Meng. In all, ANZ Royal managed about $2.84 in assets and accounted for 8.9% of the Cambodia banking sector.
5. Bank of Investment and Development of Cambodia
Bank of Investment and Development of Cambodia (BIDC) was listed by the National Bank of Cambodia as the country's fifth largest banking institution. As of the end of 2011. BIDC managed 1.82 billion in total assets and accounted for 5.7% of the Cambodia banking sector.
6. Foreign Trade Bank of Cambodia
Foreign Trade Bank of Cambodia was listed by the National Bank of Cambodia as the nation's sixth largest banking institution. 100% Cambodia national owned, FTB managed a reported 1.65 billion and accounted for 5.2% of the banking sector market share.
7. Maybank Plc.
The National Bank of Cambodia reported Maybank as Cambodia's seventh largest banking institution. As of the end of 2011, Maybank handled 1.29 billion in total assets which accounted for 4.0% market share of the Cambodia banking sector. Maybank is 100% foreign-owned and has 11 branches (7 in Phnom Penh and 4 in provincial areas).
8. Union Commercial Bank Plc.
Union Commerical Bank Plc. was listed as the eighth largest bank in the Kingdom of Cambodia. According to the 2011 NBC report published April 2012, UCB handled 1.03 billion in total assets which accounted for 3.2% of the Cambodia banking sector market share. UCB assets grew nearly 25% overagainst its 2010 holdings. Union Commercial Bank offers an one-year CD at 5.5% which could be attractive in comparison to meager rates now offered in the United States and other developed markets around the world.
9. Bank of China Phnom Penh
Bank of China is a relatively new entry in the Cambodia banking sector. Bank of China opened its first branch in Cambodia May 9, 2011. This new entrant in the Cambodia banking industry ended 2011 as Cambodia's ninth largest bank. Bank of China has one branch located in Phnom Penh, is 100% foreign-owned, and managed nearly $834 million in total assets.
10. Advanced Bank of Asia Ltd.
Advanced Bank of Asia was listed by the National Bank of Cambodia as the ASEAN nation's 10th largest bank. At the end of 2011, ABA handled $818 million in total assets and accounted for approximately 2.5% of the Cambodia bankng sector market share. Advanced Bank of Asia is 100% foreign-owned.