- With reference to the Constitution of the Kingdom of
Cambodia,
- With reference to the Royal Kram NS/RKM/ 0 196/27 of January
26, 1996 promulgating the law on the Organization and Functioning of the
National Bank of Cambodia,
- With reference to the Royal Kram NS/RKM/ 1199/13 of November
18, 1999 promulgating the law on Banking and Financial Institutions,
- With reference to the Royal Degree Chor Sor/RKT/0398/85 of
March 10, 1998 on the appointment of His Excellency Chea Chanto as Governor
General of the National Bank of Cambodia,
- With reference to the PRAKAS No. B 700-06 Pror Kor of January
11, 2000 on Licensing of Micro-finance Institutions,
- Pursuant to the agreement of the leader meeting of the
National Bank of Cambodia on January 31, 2002
Decides as following:
Article 1: Article 1 of Prakas No B 7-00-06 Pror Kor of January
11, 2000 on Licensing Micro-finance Institution, is hereby repealed and
replaced by the present Prakas.
Micro-finance is defined as follows:
Article 2: The microfinance means «the delivery of
financial services such as loans and deposits, to the poor and low-income
households, and to micro-enterprises»
Article 3: Registration with the National Bank of Cambodia is
compulsory for the all non-government organizations (NGOs), associations and
others entities engaged in micro-finance, if
they meet one of the conditions:
a) For those engaged in credit:
- Their loan portfolio outstanding is equal to or greater than
KHR 100 millions
b) For those engaged in savings mobilization
- The savings mobilized from the general public amount to KHR 1
million or more, OR
- The number of their depositors is 100 or more.
Article 4: Registered finance operators must comply with
existing law and regulations and meet the standard and criteria set by the
National Bank of Cambodia in the term of good governance, transparency, and
competence and honest management.
Article 5: The National Bank of Cambodia shall deliver the
certificate of registration to micro finance operators that present official
request for registration, meets the set standard and criteria, and submit the
required information and documents. This certificate can be withdrawn and the
registration cancelled if the operators do not comply with conditions set by
the National Bank of Cambodia.
Article 6: Micro finance operators that is denied
registration by the National Bank of Cambodia, or whose registration is
cancelled by the National Bank of Cambodia, shall cease micro finance activity
within three months of being informed of the National Bank of Cambodia's
decision.
Article 7: Registered micro finance operators shall provide
regular reports on their activities and organization, as and when required by
the National Bank of Cambodia.
Article 8: Licensing is compulsory for all micro-finance
institutions, if they meet one of the following conditions:
a) For those engaged in credit:
- Their loan portfolio outstanding is equal to or greater than
KHR 1,000 million, OR
- They have 1,000 borrowers or more
c) For those engaged in savings saving mobilization:
- The savings mobilized from the general public amount to KHR
100 million or more, OR
- The number of their depositors is 1,000 or more.
Article 9: Micro finance institutions are subject to
compulsory licensing shall prepare an application for a license to be submitted
to the National Bank of Cambodia have until December, 31 2002. Otherwise they
will have to scale down their volume of activity and operate as a registered
micro-finance institution, as provided for in Article 3 to 7 above.
Article 10: Violations to the provisions of this Prakas may give
rise to disciplinary sanctions as set forth in Article 52 of the Law on
Banking and Financial Institutions.
Article 11: The General Direction, the General Secretariat,
the General inspection, the General Cashier and all Departments of the National
Bank of Cambodia and all Micro Financial Institutions under of the National
Bank of Cambodia supervisory authority shall strictly implement this Prakas.
Article 12: This Prakas shall have effect from the signing
date.
Phnom Penh, February 25, 2002
Governor
Signed and sealed:
CHEA CHANTO
B 7.02-49 Pror Kor
PRAKAS
On
Amendment on Prakas No B 7-00-51
THE CLASSIFICATION AND PROVISIONING FOR BAD AND DOUBTFUL
DEBTS,
INCLUDING INTEREST IN SUSPENSE
The Governor of the National Bank of Cambodia
- With reference to the Constitution of the Kingdom of
Cambodia,
- With reference to the Royal Kram NS/RKM/ 0 196/27 of January
26, 1996 promulgating the law on the Organization and Functioning of the
National Bank of Cambodia,
- With reference to the Royal Kram NS/RKM/ 1199/13 of November
18, 1999 promulgating the law on Banking and Financial Institutions,
- With reference to the Royal Degree Chor Sor/RKT/0202/039 of
February 16, 2002 on the reappointment of His Excellency Chea Chanto as
Governor General of the National Bank of Cambodia;
- With reference to the PRAKAS No. B 7-00-51 on the
classification and provisions for Bad and Doubtful Debts, including Interest in
Suspense;
- Pursuant to the opinion of working group of banking and
financial service with private sector on 5 February 2002.
Decides as following:
Article 1: Article 4 of Prakas No B 7-00-51 on the
classification and provisioning for bad and doubtful debts, including interest
in suspense, is amended and has the following content: The mandatory minimum
level of specific provisioning, depending on the classification concerned,
shall be the following:
- Substandard : 10 °/°, regardless of collateral value
except cash,
- Doubtful : 30 °/° , regardless of collateral value
except cash,
- Loss: 100 °/° , if the banks can prove the actual
market value of collateral on the case by case basis, acceptable to the
National Bank of Cambodia, only part of loan uncovered will be provisioned.
Article 2: The General Direction, the General Secretariat, the
General inspection, the General
Cashier and all Departments of the National Bank of Cambodia,
and all Micro Financial Institutions under of the National Bank of Cambodia's
supervisory authority shall strictly implement this Prakas.
Article 3: This Prakas shall have effect from the signing
date.
