NBC 793-282 R2

The General Governor of the National Bank of Cambodia

Decides that:

Article 1:

The following terms shall have the meanings assigned:

1.1: Central Bank: shall mean the " National Bank of Cambodia "

1.2: Financial Institution: shall mean a " Financial Institution incorporated in and licensed to conduct banking business in Cambodia or a branch in Cambodia banking business in Cambodia of a foreign Financial Institution licensed to conduct baking business in Cambodia and / or its branches or agency in Cambodia "

1.3: Clearing balances: shall mean the " credit or debit balances held by a financial Institution with the Central Bank for the purpose of settling its obligations to other Financial Institution in Cambodia and to the Central Bank "

1.5: Deposits and other borrowings: shall mean " those deposit liabilities and other liabilities designated by the central Bank designates as subject to reserve requirements"

1.6: Designated Accounts: shall mean any " non-interest bearing account whether in riels or in a foreign currency, held by a Financial Institution with the Central Bank, that the Central Bank designates as constituting a part of the required reserves of that Financial Institution for the purposes of this Regulation "

1.8: Base period: shall mean the " reserve accounting period in respect of which a Financial Institution shall determine the amount of its deposits and other borrowings, its currency holdings and the daily average required balance to be maintained in its clearing account together with the balance on any other designated accounts "

1.9: Maintenance period : shall mean the " reserve accounting period during which a Financial Institution shall determine the amount of any deficiency arising from its failure to maintain sufficient daily average required balance, in its clearing account and / or in any other designated accounts, to meet its total required balance "

1.10: Daily average required balance: shall mean the " average daily clearing balance plus the average balance on any other designated accounts that a Financial Institution shall maintain with the Central Bank in order to satisfy its reserve requirement ".

1.11: Total required balance: shall mean the " daily average required balance " times the number of days in a maintenance period ".

1.12: Reserve deficiency: shall mean the " amount by which the total required balance exceeds the sum of the daily clearing balances held by a Financial Institution added to the sum of the daily balance on any designated accounts ".

Article 2:

The definitions given in Article 1 are applicable only to or in the context of references to this Regulation.

Each Financial Institution shall maintain Required Reserves in the form of daily average balances on its clearing account and / or other designated accounts with the Central Bank during a reserve maintenance period that when added to the daily average riel cash balances held by the Financial Institution, in its tills and vaults, during the preceding base period equal five percent (5%) of the daily average of deposits and other borrowings within the base period that shall be designated by Central Bank as being subject to reserve requirements.

Article 4:

In a separate circular annexed hereto the Central Bank shall name the cases of deposit liabilities and other borrowings that are subject to reserve requirements and shall designate the accounts which rank as reserve assets, in addition to the Financial Institutions’ clearing accounts.

Article 5:

The Central Bank shall issue amending circulars when necessary.

Article 6:

Deposits and other borrowings and designated accounts that are denominated in foreign currencies shall be converted to riel using the Central Bank’s daily buying rate for the currency concerned.

Article 7:

The Base period and the maintenance period shall each be of 28 days, or be of such duration as the Central Bank shall advise in later circular. The first day of each period shall be a Friday and the last day of each 28 days period shall be a Thursday. In a circular annexed to this Regulation and in subsequent circulars, the Central Bank shall provide details of the first and subsequent base and maintenance periods and reporting dates for the determination by each Finance Institution of the amount of its deposit liabilities and other borrowings.

Article 8:

A Financial Institution shall calculate the reserve balances that it shall hold during each maintenance period in the manner provided by the instructions in the circulars and report forms annexed to this Regulation and in any later instructions that the Central Bank may issue.

Article 9:

Article 10:

When a Financial Institution incurs a reserve deficiency during a maintenance period the Central Bank shall remedy such deficiency by transferring an amount equal to one tenth of the reserve deficiency from the clearing account of the Financial Institution incurring the deficiency to an account in that Financial Institutions’ name entitled " Required Reserve Deficiency Account". The amount transferred shall remain on the required reserve deficiency account for a period of ten days during the reserve accounting period in which the required reserve report that discloses the deficiency is received.

Article 11:

The Central Bank shall make the transfer described in 10 above within five days of the receipt of the report that discloses the deficiency.

Article 12:

An amount transferred to a required reserve deficiency account shall not rank as a reserve asset of the Financial Institution in whose name it is held.

A Financial Institution that persistently incurs a reserve deficiency in two consecutive maintenance periods or in any three maintenance periods in calendar year shall be penalized by 0,5% on the deficit amount.

Article 14:

Article 15:

All former Prakas, Regulation that are contradictory to this Regulation are no longer effective from the date of this Regulation. This Regulation shall have full force and effect on the first day of the base period mentioned in the circulars annexed hereto.

General Governor

National Bank of Cambodia

Required Reserve Report

.......................................bank

Form 015-RR1

Date..........................................

Reporting due date...................

Base period :....................... to.....................

Maintenance period :............... to ...............

Amounts in Millions of Riel

Required Reserve Report

Maintenance period Worksheet

Deposits and other specified liabilities

in foreign exchange

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Clearing Account Balance and Specified Dollar

Account Balances with the National Bank of

Cambodia Conversion Worksheet

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