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MB to set up commercial bank in Cambodia
The State Bank of Vietnam (SBV) has issued a written document allowing the Military Commercial Joint Stock Bank (MB) to establish a 100 percent-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 perceent commercial bank. It also intended to transfer 36-39 percent 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 mobilization, 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 Luu Trung Thai said that the group’s revenue was approximately 29.9 trillion VND ($1.2 billion) with a profit of 11.9 trillion VND ($508.17 million). The bad debt ratio was at 0.94 percent. VNA