Logo of Phnom Penh Post newspaper Phnom Penh Post - Prasac nominal capital up to $168M

Prasac nominal capital up to $168M

Content image - Phnom Penh Post
Prasac holds its annual workshop on Saturday. It has raised its registered capital from $110 million to $168 million, an amount five times larger than the National Bank of Cambodia’s requirement. PRASAC MFI

Prasac nominal capital up to $168M

Cambodia's largest microfinance institution Prasac has raised its registered capital from $110 million to $168 million, an amount five times larger than the National Bank of Cambodia’s (NBC) requirement.

A prakas by the NBC requires microfinance deposit-taking institutions (MDIs) like Prasac to maintain at least $30 million in registered capital.

Prasac Microfinance Institution Ltd senior vice-president Say Sony told The Post on Wednesday that Prasac’s proposal to increase its registered capital was approved by the NBC on December 31 and by the Ministry of Commerce on Tuesday.

Sony said the increase in registered capital proves that Prasac can grow its business in terms of quantity, quality and efficiency.

“We consider this a great milestone and a great start to 2019. The increase in registered capital shows shareholders our commitment to support the NBC’s objectives – to strengthen financial regulations and prudential requirements,” Sony said.

He said at the end of last year, Prasac’s assets totalled $2.37 billion. Its outstanding balance amounted to $1.96 billion while deposits totalled $1.29 billion.

At the end of last year, Prasac installed more than 126 ATMs, 498 points of sale systems and saw 11,200 registered mobile banking users.

On March 2016, the NBC issued a prakas, requiring financial institutions to raise their minimum capital to operate in the Kingdom.

It requires all commercial banks, including subsidiaries of foreign banks, to increase their minimum capital to the equivalent of $75 million.

Specialised banks are required to raise their minimum capital to $15 million from $7.5 million, while MDIs had to raise their minimum capital to $30 million from $2.5 million.

Cambodia Microfinance Association executive director Yun Sovanna said on Wednesday that the increase of Prasac’s registered capital is warranted given that the financial firm has grown rapidly.

He said once a financial institution grows through bigger loans and deposits, it begins to see risks. He said the firm’s decision to increase its capital far greater than the central bank’s requirements proves that is has a strong commitment to maintaining financial health and ensuring public confidence.

“When financial institutions grow, they always want to offer comprehensive financial services,” he said, adding that operators may view staying as an MDI or MFI might limit their ability to offer services.

“In general, MFIs and MDIs always have the ambition to transform themselves to a [bank] so they can offer comprehensive financial services.”


  • Ministry orders all schools, public and private, to close for SEA Games

    From April 20 to May 18, all public and private educational institutions will be closed to maintain order and support Cambodia's hosting of the 32nd SEA Games and 12th ASEAN Para Games, said a directive from the Ministry of Education, Youth and Sport. Cambodia will host the

  • Almost 9K tourists see equinox sunrise at Angkor Wat

    Nearly 9,000 visitors – including 2,226 international tourists – gathered at Angkor Wat on March 21 to view the spring equinox sunrise, according to a senior official of the Siem Reap provinical tourism department. Ngov Seng Kak, director of the department, said a total of 8,726 people visited Angkor Wat to

  • Angkor Beer strengthens national pride with golden new look and fresher taste

    Angkor Beer – the "Gold of Angkor" – has a new look, one that is more stylish and carries a premium appeal, as well as a fresher taste and smoother flavour, making it the perfect choice for any gathering. Angkor Beer recently launched its new design, one

  • Newest horror film showcases unique Khmer culture, identity

    At first glance, the trailer to new horror sensation The Ritual: Black Nun looks like a western-produced feature film. As the story reveals itself to the viewers, it becomes clearer that this is a Khmer film, with a strong Cambodian identity and close links to

  • Water supply authority assures public shortages over early ‘24

    The Phnom Penh Water Supply Authority (PPWSA) asked for understanding from Phnom Penh residents in some communes where water pressure is weak. They assured residents that all supply issues will be resolved by early 2024, but have suggested that residents use water sparingly in the meantime.

  • Khmer ballet documentary debuts April 1

    A new documentary, The Perfect Motion, or Tep Hattha in Khmer, will premiere to the public on April 1. The documentary film follows two intertwined storylines: the creation of a show called Metamorphosis by the late Princess Norodom Buppha Devi (her very last production) and the