Cambodian microfinance institution (MFI) PRASAC plans to apply to the National Bank of Camodia (NBC) for a license that would expand its deposit-taking activities. According to PRASAC General Manager Mr Sim Senacheert, this is part of PRASAC’s plan to become a commercial bank within five years.
PRASAC intends to offer the public interest rates of 8 percent and 6.5 percent for one-year deposits in KHR and USD, respectively. Six-month savings deposits will be offered at an annual rate of 5.5 percent and 5 percent, respectively. While higher than rates offered by commercial banks, these rates are cheaper than borrowing from foreign lenders, who charge up to 10.5 percent per year.
According to the MIX Market, the microfinance information clearinghouse, PRASAC had 2,920 depositors and USD 62,956 in deposits as of year-end 2008.
By: Stefanie Rubin, Research Assistant
About PRASAC:
PRASAC was established in 1995 with funding from the European Union as a support program for the agricultural sector in Cambodia. It became a licensed microfinance institution (MFI) in 2002. According to the MIX Market, the microfinance information clearinghouse, as of 2008 PRASAC had a gross loan portfolio of USD 59.4 million, total assets of USD 61.3 million and total deposits of USD 62,956. It had 100,116 active borrowers and 2,920 depositors. PRASAC had a reported return on assets (ROA) of 5.54 percent and return on equity (ROE) of 15.79 percent.
Additional Resources:
Source Article: The Phnom Penh Post: MFI Prasac Set to Seek License to Take Deposits: http://www.phnompenhpost.com/index.php/2010020131347/Business/mfi-prasac-set-to-seek-licence-to-take-deposits.html
The MIX Market: PRASAC: http://www.mixmarket.org/mfi/prasac
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