Can you give us a brief history of MekongBank
since its formation and significant developments
over the past four years?
Mekong Bank began operations in May 1999.
It is licensed to provide all forms of domestic
and international banking services. The
Bank's clients include prominent local and
international businesses as well as multinational
corporations with investments in Cambodia
.
I am the controlling shareholder and work
as President and Chief Executive Officer
of the Bank. The Chairman of MekongBank's
Board is Michael C. Stephen, an American
with many years of international commercial
and investment banking experience. Outside
directors are Bretton G. Sciaroni, a US
citizen and an attorney who has been resident
of Cambodia for more than ten years; and
Tay Kah Chye, a Singaporean who is President
& CEO of ASEAN Finance Corporation and
also Secretary General of the ASEAN Bankers
Association.
In 1998, MekongBank became the first bank
in Cambodia to provide on- line processing
for credit card transactions and in 2001
was the first financial institution in Cambodia
to issue credit cards in its own name.
Can you comment on the performance of
your bank in terms of figures? (employees,
branches, capital deposited, turnover, etc
)
As of 31 December 2002 MekongBank had total
assets of US$18.5 million and paid in capital
of US$13 million. We have three banking
offices in Phnom Penh and one each in Sihanoukville
and Siem Reap (with plans to open in Battambang
during 2003). In addition, we have ''money
exchange counters'' located in Phnom Penh
and Siem Reap. Total staff is 96 for all
locations.
In addition to the standard services
offered by most banks, you have also introduced
the credit card system to customers in Cambodia.
Which additional new products do you plan
to introduce to the Cambodian market in
the near and medium term?
We have two important initiatives under
development at the present time. One is
Privileged Banking, which is designed to
provide a high level of service to individual
customers. The other is Wholesale Banking,
which will be aimed at large corporate clients
and financial institutions. This entails
transaction processing and other technology
based services. Both of these initiatives
are in line with our strategy to combine
the most advance IT systems of any bank
in Cambodia with a customised approach to
client relationships.
How is your bank positioning itself
in the Cambodian market and what will your
strategy be over the next few years? Are
you looking for partners?
Stemming largely from our deep involvement
in the credit card business, MekongBank
has been a pioneer in the use of technology
in banking services in Cambodia. We have
made a substantial and continuing investments
in Information Technology, and plan to take
advantage of its superior technological
capabilities by offering transaction- processing
services to corporations and financial institutions
in Cambodia and the region.
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It is also a fundamental policy of MekongBank
to become Cambodia's leading international
financial institution. We have established
correspondent relations with major international
banks in Europe, Asia and the United States.
For example, through our principle international
correspondent and strategic partner, ABN-AMRO
Bank, we have access to their global network
of over 3,500 locations in 76 countries.
Another critical element in MekongBank's
international policy involves the establishment
of strategic alliances with key financial
institutions throughout the region.
MekongBank also participates actively in
efforts to promote the development of the
banking industry in Cambodia. In addition
to its involvement with the Association
of Banks in Cambodia, senior management
and members of the Board maintain a continuing
dialogue with business and government leaders
in Cambodia and the region.
You are also president of the association
of banks in Cambodia. When was this organization
established; how many members does it have
now; what are its main activities and objectives?
The Association currently has 23 members,
consisting of local and foreign banks. We
began to organise ourselves in 1994 and
are now fully recognised under the banking
Act. Our chief functions are to share information
among members, to participate in joint activities
such as training and to act as a single
voice for the industry in dealing with the
public and the Royal Government. We are
also members of the ASEAN Bankers Association,
which has been of great benefit to individual
banks and to the Cambodian banking system
as a whole.
As president of the Association, as
well as the Chief Executive of an important
local bank, what do you see as the major
strengths and weaknesses of the Cambodian
banking sector today ?
The Cambodian banking industry (with the
exception of the Foreign Trade bank) is
private sector and represents a healthy
mix of local and foreign owned institutions.
We are adequately capitalised and backed
by a strong regulatory system. We are well
positioned to provide the financial backing
for future growth in the Cambodian private
sector. We are also increasingly integrated
into the regional and global international
financial system.
Countering this is the relatively undeveloped
state of the financial infrastructure. For
example, we still do not have a viable market
for interbank lending or marketable Government
securities that are essential to the development
of a local capital market. We also need
a much better legal and judicial framework
in which to conduct our business.
All of these things and more are contemplated
in the ADB's 10 year Financial Blue Print,
but we are still in the first stages of
implementation .
Please tell us more about your personal
background and career.
I am a Cambodian national and received
my education in Thailand, France, the United
Kingdom, and the United States. I returned
to Cambodia in 1992 and have been the CEO
of MekongBank since its founding in 1994.
Although the bank is my principle occupation,
I also spend a fair amount of time working
on regional matters. I am firm believer
in mutual co-operation and greater integration
among ASEAN financial institutions. In pursuit
of these interests I travel frequently throughout
Asia, as well as in Europe and the united
States.
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