In Myanmar, which recently lifted restrictions barring wholly foreign-owned direct investments, ACLEDA Bank Public Limited Company (PLC), a Cambodian commercial bank specializing in microfinance, plans to launch microfinance operations by January 2013. ACLEDA will begin by offering only services such as small loans to individuals and groups. Over time, it plans to garner domestic savings and deposits in urban areas to circulate loans for small businesses in rural areas. Among the challenges ACLEDA will face are a range of financial rules and regulations including an interest rate ceiling of 30 percent on loans.
According to the US-based nonprofit Microfinance Information Exchange (MIX), ACLEDA reported total assets of USD 1.5 billion, a gross loan portfolio USD 1 billion, 272,300 active borrowers, deposits of USD 1.1 billion, 821,900 depositors, return on assets (ROA) of 3.73 percent, and return on equity (ROE) of 32.03 percent as of 2011. In addition to Cambodia, ACLEDA also operates in Laos.
By Jennifer Young, Research Associate
About ACLEDA Bank PLC
ACLEDA Bank is a public limited company based in Cambodia. It was originally founded in January 1993 as The Association of Cambodian Local Economic Development Agencies (ACLEDA), a non-governmental organization aiming to raise the standards of living of poor people by promoting economic activities ranging from self-employment to medium-sized business. It was licensed by the National Bank of Cambodia as a Specialized Bank in October 2000 and as a Commercial Bank in December 2003, when it was renamed ACLEDA Bank. It provides a range of banking services including deposits, loans, cash management and trade services. ACLEDA also works in Laos through is subsidiary, ACLEDA Laos. According to the US-based nonprofit Microfinance Information Exchange (MIX), ACLEDA reported total assets of USD 1.5 billion, a gross loan portfolio USD 1 billion, 272,300 active borrowers, deposits of USD 1.1 billion, 821,900 depositors, return on assets (ROA) of 3.73 percent, and return on equity (ROE) of 32.03 percent as of December 2011.
Sources and Additional Resources
Upsides Story: “Pioneering Microfinance in Myanmar,” December 5, 2012.
MicroCapital Story: “MICROCAPITAL BRIEF: responsAbility Lends $4m to ACLEDA Bank, Hattha Kaksekar Limited (HKL) of Cambodia,” January 18, 2012.
MicroCapital Story: “MICROCAPITAL BRIEF: Myanmar Caps Microloan Interest Rates at 17%, Germany’s Savings Bank Foundation for International Cooperation (SBFIC), Philippine’s CARD Fund Mingalar Myanmar, Myanmar Egress Microfinance Projects,” July 25, 2012.
MicroCapital Story: “MICROFINANCE PUBLICATION ROUND-UP: Microfinance and Witch Hunts in India; Poverty Scorecard for Myanmar; Andhra Pradesh Clients Post-Microfinance Crisis,” October 3, 2012.
MicroCapital Universe Profile: ACLEDA Bank PLC
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