ACLEDA Bank Company

ACLEDA Bank Company

1. Company Overview

Founding Date and Background

ACLEDA Bank Plc. was established in January 1993, initially as a non-governmental organization (NGO) focused on providing microfinance services to support small and micro-enterprise development. The bank transitioned into a commercial entity in 2003, after obtaining a specialized banking license in 2000. Over the years, it has evolved into Cambodia's largest commercial bank, offering a comprehensive range of financial services.

Parent Company/Ownership Structure

ACLEDA Bank is structured as a public limited company. As of June 2019, it is 51% owned by Cambodian interests, including its staff, while the remaining 49% is held by foreign investors, including Sumitomo Mitsui Banking Corporation, Cofibred, Orix Corporation, and various investment funds managed by Triodos Investment Management.

Headquarters Location

The bank's headquarters is located in Phnom Penh, Cambodia. This strategic location enables ACLEDA Bank to effectively serve its extensive customer base across the country.

Global Business Scope

ACLEDA Bank operates not only in Cambodia but also has expanded its services to Laos and Myanmar. As of December 31, 2017, the bank managed 261 offices in Cambodia, 42 branches in Laos, and 7 offices in Myanmar, demonstrating its regional presence in Southeast Asia.

Main Regulatory Bodies

The bank operates under the regulations set forth by the National Bank of Cambodia (NBC) and is also subject to oversight from the Securities and Exchange Commission of Cambodia (SECC) for its brokerage activities.

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2. Company History and Development

Key Milestones

• 1993: ACLEDA Bank was founded as an NGO.
• 2000: The bank received its specialized banking license.
• 2003: ACLEDA Bank was officially licensed as a commercial bank.
• 2012: The bank expanded its operations into Laos and Myanmar.
• 2017: ACLEDA Bank reported total assets exceeding $5.2 billion, affirming its status as Cambodias largest commercial bank.

Business Expansion Journey

Starting from its roots in microfinance, ACLEDA Bank has progressively expanded its services to include a full spectrum of banking and financial services. The bank's entry into Laos in 2008 marked its first international expansion, followed by the establishment of a microfinance subsidiary in Myanmar in 2013.

Customer Base Growth

As of December 31, 2017, ACLEDA Bank had more than 1.7 million depositors, reflecting its significant growth in customer acquisition and retention. The bank's focus on microfinance has been pivotal in building a diverse customer base, particularly among small and medium enterprises.

Platform Development History

Over the years, ACLEDA Bank has invested in technological advancements to enhance its service delivery. The bank has developed a robust online banking platform and has integrated various digital services to meet the evolving needs of its customers.

Important Awards or Recognitions Received

ACLEDA Bank has received several accolades for its contributions to the banking sector in Cambodia, including recognition from international credit rating agencies such as Standard & Poor's. This recognition underscores the bank's commitment to maintaining high standards in financial services.

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3. Trading Services Offered

Forex Trading Options

ACLEDA Bank offers a selection of foreign exchange (Forex) trading options, including multiple currency pairs. While specific numbers may vary, the bank provides access to major and minor currency pairs, catering to diverse trading needs.

Stock Trading Options

Through its subsidiary, ACLEDA Securities Plc., the bank facilitates stock trading services, allowing customers to invest in publicly listed companies on the Cambodia Securities Exchange (CSX). This service is crucial for investors looking to participate in the local stock market.

CFD Trading Products

As of the latest available information, ACLEDA Bank does not explicitly mention offering Contracts for Difference (CFDs) in its trading services. However, it focuses on traditional banking and investment services, including stock market access.

Other Financial Instruments

ACLEDA Bank has begun to explore additional financial instruments, including commodities and bonds. However, the direct offering of cryptocurrencies has not been established as part of its financial services portfolio.

Special Services or Unique Advantages

One of the unique advantages of ACLEDA Bank is its extensive branch network across Cambodia, Laos, and Myanmar, which provides customers with convenient access to banking and financial services. Additionally, the bank's partnership with Prudential Cambodia allows it to offer life insurance services, enhancing its value proposition to customers.

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4. Regulatory and Legal Background

Detailed Regulatory Information

ACLEDA Bank is regulated by several key bodies:

• National Bank of Cambodia (NBC): Governs banking operations and ensures compliance with national banking regulations.
• Securities and Exchange Commission of Cambodia (SECC): Oversees the bank's brokerage activities and ensures adherence to securities laws.

Legal Entity Structure by Region

• Cambodia: ACLEDA Bank Plc., a licensed commercial bank.
• Laos: ACLEDA Bank Lao Ltd., providing banking services.
• Myanmar: ACLEDA MFI Myanmar Co., Ltd., operating as a microfinance institution.

Client Fund Protection Measures

ACLEDA Bank implements various measures to protect client funds, including maintaining adequate capital reserves and adhering to regulatory requirements set by the NBC. The bank's participation in the deposit insurance scheme further safeguards depositor interests.

Countries/Regions Served

The bank primarily serves customers in Cambodia, Laos, and Myanmar. Its extensive branch network allows it to reach a wide range of clients, including individuals and businesses.

Compliance History

ACLEDA Bank has maintained a strong compliance record, adhering to the regulations established by the NBC and SECC. The bank's commitment to transparency and regulatory compliance has been a cornerstone of its operations.

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5. Competitive Landscape

3-5 Main Competitors

• Canadia Bank: A significant player in the Cambodian banking sector, offering a range of banking services.
• Foreign Trade Bank of Cambodia (FTB): Known for its commercial banking services, particularly in trade financing.
• Vattanac Brewery: Although primarily a brewery, it has diversified into financial services, competing in the microfinance space.
• ABA Bank: A rapidly growing bank known for its innovative banking solutions and customer service.

Positioning in the Industry

ACLEDA Bank holds a leading position in the Cambodian banking sector, recognized for its extensive network and comprehensive range of services. It is particularly noted for its microfinance roots and commitment to supporting small enterprises.

Market Differentiation Factors

ACLEDA Bank differentiates itself through its vast branch network, strong customer service, and a diversified service portfolio that includes banking, microfinance, securities brokerage, and life insurance. Its established reputation and history of stability make it a trusted choice for customers in the region.

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In conclusion, ACLEDA Bank has established itself as a pivotal player in the Cambodian banking sector, with a strong commitment to supporting economic development through its diverse financial services. Its extensive history, regulatory compliance, and strategic expansion into neighboring countries position it well for future growth. For more information on ACLEDA Bank's services, learn more.