Phnom Penh Post, Issue 16 / 26, December 28, 2007 - January 10, 2008
Acleda Bank delivered a New Year's surprise Thursday, announcing it obtained permission from the government of Laos to open a commercial bank there in 2008.
Officials of Acleda called the expansion to Laos just the first of a regional expansion. Investment in other countries is likely to come.
Lao PDR has one of the most underdeveloped economies in Asia, but like Cambodia, its finance and banking sector is developing and it is working with help from the Korea Exchange to set up a stock market. The stock market is expected to open in 2010, a year after Cambodia's stock market, with state run companies listing.
In Channy, Acleda Bank president and CEO, said the banking market in Laos is smaller than Cambodia with less competition.
"Most commercial banks are operating in the capital city, Vientiane, and they are now starting expansion to the provinces."
Channy called the expansion the result of a three-year strategic plan he presented to the Board of Directors in 2005 to build Acleda into a regional player. He said Acleda is studying the possibility of entering Vietnam and China, as well as other Asian markets.
He said the Lao bank will use the same retail banking models, including electronic banking services and online MIS platforms, that were developed for Cambodia.
Vann Saroeun, who will manage Acleda Bank Lao Ltd., said plans are to expand to the provinces as soon as possible starting with Sovannakhet and Pakse.
Saroeun managed Acleda operations in Siem Reap and Uddar Meancheay since 1993.
He said the microfinance industry in Laos is dominated by development funds in the north.
"There is only one microfinance bank but there are many many development funds. We have a different target."
The bank will begin operations at the beginning of June, said Saroeun. He said recruitment will begin in January for a staff of about 80.
"It's a very long process. We have to advertise by radio and tv and newspapers." Saroeun has taken a crash course in the Lao language.
Acleda, which now has $450 million in assets, started operations as a microfinance NGO in 1993 making loans to the poor.
Paid up captial for the Laos bank is $10.5 million.
Officials of Acleda called the expansion to Laos just the first of a regional expansion. Investment in other countries is likely to come.
Lao PDR has one of the most underdeveloped economies in Asia, but like Cambodia, its finance and banking sector is developing and it is working with help from the Korea Exchange to set up a stock market. The stock market is expected to open in 2010, a year after Cambodia's stock market, with state run companies listing.
In Channy, Acleda Bank president and CEO, said the banking market in Laos is smaller than Cambodia with less competition.
"Most commercial banks are operating in the capital city, Vientiane, and they are now starting expansion to the provinces."
Channy called the expansion the result of a three-year strategic plan he presented to the Board of Directors in 2005 to build Acleda into a regional player. He said Acleda is studying the possibility of entering Vietnam and China, as well as other Asian markets.
He said the Lao bank will use the same retail banking models, including electronic banking services and online MIS platforms, that were developed for Cambodia.
Vann Saroeun, who will manage Acleda Bank Lao Ltd., said plans are to expand to the provinces as soon as possible starting with Sovannakhet and Pakse.
Saroeun managed Acleda operations in Siem Reap and Uddar Meancheay since 1993.
He said the microfinance industry in Laos is dominated by development funds in the north.
"There is only one microfinance bank but there are many many development funds. We have a different target."
The bank will begin operations at the beginning of June, said Saroeun. He said recruitment will begin in January for a staff of about 80.
"It's a very long process. We have to advertise by radio and tv and newspapers." Saroeun has taken a crash course in the Lao language.
Acleda, which now has $450 million in assets, started operations as a microfinance NGO in 1993 making loans to the poor.
Paid up captial for the Laos bank is $10.5 million.
2 comments:
Is ACLDA Bank operating like Gramy Bank in Bangladesh? Or Is it a CPP bank run with Money of Top Corrupt CPP officials?
It seems this bank has been growing so fast at the expense of Cambodian poor people.
We must be cautious wih ACLDA Bank.
Please rethink. Looking into its shareholders: IFC (World Bank's branch), FMO & TRIODOS (Netherland's sustainability banking institutions), DEG (Germany's financial institution for development). In 2005, ACLEDA receive IFC's Client Leadership Awards. This award draws on over 1,000 IFC's clients worldwide and honor the examplary practice regarding development, financial & social transparency.
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