News eDaily15 Oct 2015

Cambodia:Bank deposit insurance proposed

15 Oct 2015

A deposit insurance scheme is deemed as needed in Cambodia, which is the only country in ASEAN with the exception of Myanmar that has yet to implement such a scheme.

The debate over a  deposit insurance scheme arose following a proposal put forward at a recent banking conference organised  by the National Bank of Cambodia (NBC), the Kingdom’s central bank.

The proposal is for the deposit insurance fund to be administered by a legally separate entity within the central bank that would step in to pay depositors in the event of a bank’s collapse, reported the Phnom Penh Post.

Participation in the scheme would be mandatory for all licensed commercial banks and microfinance institutions in Cambodia, but the insurance would only cover riel deposits – furthering the central bank’s campaign to promote the use of the local currency.

NBC Director-General Chea Serey said that the central bank would review and consider the deposit insurance proposal.

 

 

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