Financial firm consolidation will boost industry resilience, says NBC governor

Financial firm consolidation will boost industry resilience, says NBC governor

Witnessing the merger between PRASAC Minority Depository

Institution (MDI) and Kookmin Bank Cambodia, the Governor of the National Bank of Cambodia (NBC) Chea Serey expressed hope to see more consolation happening in the industry to boost its resilience and efficiency.

A grand opening ceremony of the ‘KB PRASAC Bank Plc’ on Friday was presided over by Chea Serey, Governor of NBC and Yang Jong Hee, Chairman and Chief Executive Officer (CEO) of KB Financial Group along with Lee Jae Keun, President of Kookmin Bank held in Phnom Penh.

The combination of PRASAC MDI and Kookmin Bank Cambodia, one of the biggest financial groups in South Korea, Serey posted on her social media, “The presence of KB Group Chairman and Kookmin Bank CEO at the ceremony is a testimony of confidence of the group operating in our country. I hope to see more consolidation happening in the industry to boost resilience and efficiency,” she wrote.

During the event, Yang said, “We are committed to delivering the finest experiences to our customers and fostering mutual growth through promoting balanced development across local regions in the country, alongside embracing coexistence and shared prosperity.

“With a customer-centric approach, we aspire to evolve into the lifelong financial partner of the Cambodian populace, tailoring optimal financial services to their life stages.”

Aiming to become the top commercial bank in Cambodia, the bank intends to introduce products tailored to the specific needs of customers in each region. These offerings will include small-scale loans for farmers, support loans for small businesses and housing loans for the middle class, he added.

The bank also plans to bridge the gap between its current operation base in rural areas and its new target in urban areas through financial means.

“KB PRASAC Bank ranks as the fourth-largest commercial bank in Cambodia in terms of scale with 190 operational branches and a workforce exceeding 5,000. Hence, we are dedicated to expanding our business base while strengthening our foundation,” a KB Kookmin Bank official said.

The ceremony saw approximately 700 individuals attend the event along with key figures in attendance including Chring Botum Rangsay, Ambassador of Cambodia to Korea and representatives from Korean companies that expanding into the country as well as employees from KB PRASAC Bank were also present at the occasion.

In 2009, KB Group took its first step into the Kingdom’s market by establishing Kookmin Bank Cambodia. Subsequently, it successfully acquired a 100 percent stake in Prasac Microfinance Institution, which specializes in small loan operations.

In August last year, KB obtained approvals from Cambodian authorities to merge Kookmin Bank Cambodia and Prasac Microfinance Institution, leading to the launch of KB PRASAC Bank. khmertimeskh

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