Kingdom of Cambodia

Nation – Religion – King

The National Bank of Cambodia

00-39/PrK

PRAKAS on

Banks' Minimum Capital

The Governor of the National Banks of Cambodia

- With reference to the Constitution of the Kingdom of Cambodia;

- With reference to the Kram NS/RKM/0196/27 of January 26, 1996 promulgating the Law on the Organization and Functioning of the National Bank of Cambodia;

- With reference to the Kram NS/KRM/1199/13 of November 18, 1999 promulgating the Law on Banking and Financial Institutions;

- With reference to the Kret CS/RKT/0398/85 of March 10, 1998 on the appointment of His Excellency Chea Chanto as Governor General of the National Bank of Cambodia;

Pursuant to the request of the Banking Supervision Department;

Decides as follows:

Article 1:

To obtain a license, banks locally incorporated as companies, must have a paid-up minimum capital equal to at least KHR 50,000,000,000 (fifty billion).

Article 2:

Before obtaining a license, branches of foreign banks must have a paid-up capital endowment equal to at least the minimum capital of banks locally incorporated as companies as mentioned in Article 1 above.

Article 3:

Banks which have been in operation in Cambodia prior to the end of 1997, shall be required to comply with the minimum capital requirement laid down in Article 1 of this Prakas at the latest on December 31, 2001.

However, the National Bank of Cambodia will grant such a deadline only to banks which show a very satisfactory financial position.

Article 4:

To prove that their assets minus related potential losses and intangibles exceed their liabilities to third parties by an amount equal to at least the minimum capital, banks must ascertain on an ongoing basis that their base net worth, as calculated in accordance with the provisions of Prakas on the calculation of banks' net worth, is equal to at least the minimum capital.

Article 5:

All provisions, which are contrary to those of this Prakas, are hereby repealed.

Article 6:

The General Direction, the General Secretariat, the General Cashier, the General Inspection, all Departments of the NBC, and all Banking and Financial Institutions under the NBC's supervisory authority shall strictly implement this Prakas.

Article 7:

This Prakas shall have effect from this signing date herein.

Phnom Penh, February 09, 2000

The Governor: Chea Chanto