Nat’l Bank warns against shady deposit schemes
Nat’l Bank warns against shady deposit schemes
The National Bank of Cambodia issued a letter on Wednesday clarifying that only seven microfinance institutions (MFIs) are licensed to accept deposits from the public.
The notification came after the central bank noticed several “rural credit operators” – institutions smaller than a typical MFI that are often licensed to issue loans but not accept deposits – were advertising deposit services without permission from the bank.
The letter does not name those institutions.
“Some rural credit operators that have transformed from NGOs are approaching the public to put deposits in the form of borrowing contracts, with a promise they will offer a high interest rate,” the letter says.
“Aside from the above seven MFIs, other MFIs and rural credit operators, [even though] they are under control of the National Bank, are not allowed to accept deposits from the public in any form.”
The seven MFIs licensed to accept deposits are VisionFund, Prasac, Hattha Kaksekar, AMK, Kredit, Amret, and LOLC.
