Two years after opening, Indonesia’s Lippobank is in the final stages of shutting down its Phnom Penh branch.
KPMG has been appointed the bank’s local agent to wind up any outstanding business or debts, according to a notice. The accounting firm declined to comment Tuesday without authorization from Jakarta.
National Bank of Cambodia Deputy Governor Sum Nipha said Lippobank notified authorities about six months ago that the branch would close. An audit was conducted and Lippo’s $5 million deposit was refunded, she said.
The bank branch opened in October 1997, shortly after the region’s currency and stock crisis began and at a time Cambodia’s economy still was reeling from factional fighting in July. The branch maintained a low profile and last year downsized, leaving one representative and a handful of staff.
Sum Nipha said the decision to close was entirely due to the Indonesian bank’s financial troubles at home. “We hope they may come back to invest again,” she said.