Wednesday, June 29, 2011

Cambodian banks aim to ride agriculture boom

  • Cambodian banks see strong deposit growth
  • Agricultural investments may help loan market expand
  • Foreign buyers interested, but market crowded

By Frederik Richter

PHNOM PENH, June 28 (Reuters) – Cambodian banks are hoping that a surge in agricultural investment will bring in the customers they need to take out loans and put to work the cash flooding into the frontier market’s overcrowded banking system.

Cambodia, which is due to open a stock exchange this year, is attracting investment to rural areas as it seeks to move from exporting primary crops to milling rice and packaging seafood to sell abroad.

Foreign donors have vastly expanded rural road networks and firms from Vietnam, Thailand, Malaysia and beyond are scrambling to buy land and expand rubber and rice plantations.

But while the streets of Phnom Penh are cluttered with bank branches and cash machines, banks have ignored rural areas.

Please click here to read more...

No comments: