REGULATION DATED JANUARY 1, 1994
ON THE CONDITIONS FOR COMMERCIAL BANKS
(ABROGATED BYART 11 OF REGULATION DATED DECEMBER 29, 1997
ON THE CONDITIONS FOR BANKS AND FINANCIAL INSTITUTIONS)
National Bank of Cambodia
No Nbc 794-001-R3
The Governor of the National Bank of Cambodia,
put forth the following conditions for commercial bank:
1- FOR COMMERCIAL BANKS THAT HAVE ALREADY HAD THE BANK’S LICENSE, BUT HAVE NOT YET
STARTED THE OPERATION, AND FOR COMMERCIAL BANKS THAT ARE REQUESTING FOR THE OPENING OF BUSINESS:
shall fulfill the following conditions:
1.1- The Capital stated in the Articles and Memorandum is at least ten billion Riels (10,000,000,000.00 )
1.2- Shall pay up hundred per cent (100%) of the Capital stated in the Articles and Memorandum in Riels (local currency) through account opened at the National Bank of Cambodia, before the commencing date of operation, as stated in 1.4 below.
1.3- Shall deposit the guarantee at the National Bank of Cambodia the amount of five per cent (5%) of the Capital Stated in the Articles and Memorandum before or on the dated of issuing the provisional license.
1.4- Shall start the Banking business before May 31, 1994 at the latest.
1.5- In case of any delay in the opening of the banking business, shall be penalized and disciplined in the following conditions.
1.5.1- From the date of expiration until before or on May 31, 1994: shall be fined five million (5,000,000.00) Riels for the delay of operation.
1.5.2- From June 1, 1994 to June 30, 1994: shall be fined five million (5,000,000.00) Riels a day for the delay operation.
1.5.3- From June 30, 1994: The Banking license shall be confiscated and shall pay the fine of five per cent (5%) of the Capital stated in the Articles and Memorandum to the National Bank of Cambodia.
1.6- Shall pay the cost for the amendment of Articles and Memorandum as in the following cases.
1.6.1- Request for Capital increase: Shall pay zero point two per cent (0.2%) of the Capital to be increased.
1.6.2- Request for the Capital decrease: Shall pay one per cent (1.00%) of the Capital to be decreased. " If there is the approval for the increasing or decreasing the Capital, any individual commercial Bank shall have to change the statement of its Capital on the header of its letters and documents. If not so, the individual commercial Bank shall be under disciplinary punishment, and even be temporary closed down"
1.6.3- Sale (cession) or transfer of shares: Shall pay one per cent (1.00%) of the total value of shares to be sold (ceded) or transferred.
1.6.4- Other amendments: Shall pay one million (1,000,000.00) Riels for a page of Articles and memorandum to be amended.
1.7- Shall pay two million and five hundred thousand (2,500,000.00) Riels for the request for right to make the application to set-up the Bank at the first submission of the application and this payment can not be refund, although the fulfillment of the conditions to set-up the Bank can be achieved or not.
1.8- Shall pay an annual cost of fifty million (50,000,000.00) Riels for the Banking license fee, a foreign bank in Cambodia, the representative office of a foreign bank in Cambodia as well as a branch or representative office of above said banks in Cambodia. The payment shall be made in quarterly proportion.
2- FOR COMMERCIAL BANKS THAT ARE IN OPERATION:
Shall fulfill the following conditions:
2.1- shall pay up the Capital in proportion stated in the Articles and Memorandum already agreed upon and properly kept as file by the National Bank of Cambodia. But, for the commercial Banks which have not yet clearly stated the proportion of their first paid up Capital in its Articles and memorandum, or they have clearly stated but have not yet approved by the National Bank of Cambodia, shall have to pay up hundred per cent (100.00%) of the Capital as mentioned in the above 1.2 before or on March 31, 1994.
In case of exceeding this expiration those commercial Bank shall be fined and disciplined as below
2.1.1- From April 1, 1994 to April 30, 1994: shall pay zero point five per thousand (0.50%) a day of the Capital which has not been paid for any delay.
2.1.2- From April 30, 1994: Shall be subject to disciplinary measures by the National Bank of Cambodia, and even be temporarily closed down.
2.2- Shall deposit the guarantee at he National Bank of Cambodia the amount of five per cent (5%) of the Capital stated in the Articles and memorandum before or on March 31, 1994 at the latest. In case of exceeding the expiration, shall be subjected to the penalty and disciplinary measures as below:
2.2.1- From April 1, 1994 to April 30, 1994: Shall pay zero point five per thousand (0.50%) a day of the amount which has not been paid in case of any delay.
2.2.2- From April 30, 1994: Shall be subjected to disciplinary measures, or even be temporary closed down.
2.3- Shall pay the cost for the amendment of Articles and memorandum " If there is any request for the amendment " according to the cases and conditions stated in the above 1.6.
2.4- Shall pay an annual cost for the baking license in line with the spirit of the 1.8, starting from the beginning of 1994.
3- EFFECTIVENESS OF BANKING LICENSE:
Banking licenses are of two types:
3.1- First type: Temporary license " letter of agreement in Principle " It is used for creating favorable conditions to prepare offices and technical necessity the temporary license, which has been already issued, is effective for 12 months from the date of issuance. In case of expiration, and if the individual Commercial Banks want to continue their projects, the matter can be settled only when the individual Banks have fulfilled the conditions stated in the above 1.5.1.
3.2- Second type: Official Banking license: This license shall be issued after the commercial banks have fulfilled all the conditions and declared the official opening for business for a limited effective period under the conditions and declared that the National Bank of Cambodia can reserve the right or take back the license before the expiration according to mistakes of each commercial Bank.
Any Prakas, Regulations and notices that are contradictory to the content of this regulation are considered void.
This regulation comes into force from the date of signature.
Thor Peng Leath