The Securities and Exchange Commission of Cambodia yesterday licensed three banks that will be responsible for carrying out transactions on the planned stock market, banking officials said.
Canadia Bank, Acleda Bank and the Bank for Investment and Development of Vietnam were presented with the licenses yesterday at a ceremony in Phnom Penh, said Dieter Billmeier, vice president of Canadia Bank.
The licenses, which come after the SECC in November licensed 15 financial institutions with securities and brokerage licenses, allow banks to complete transactions on the bourse between buyers and sellers.
“A cash settlement agent handles and manages clients’ cash settlement account,” said Mr Billmeier. “This is a medium- to long-term plan. We just want to be one of the leading banks to participate in the stock exchange.”
Bankers said yesterday that operating as a cash settlement agent would help banks increase deposits, as all buyers and sellers of stocks on the bourse will be obliged to set up an account at one of the licensed banks. Banks will also be able to charge a fee on the transaction.
“It can contribute to the growth of Acleda Bank,” said Hay Svay, managing director of Acleda Securities Plc, one of four brokers that have been licensed by the SECC.
He added that it was still unclear whether any interest would be paid on settlement accounts held at the bank. “We need a bit more time to consider on that,” he said.
Ming Bangkosal, director general of the Securities and Exchange Commission of Cambodia, could not be reached.
Just four months before the government has said the stock market will launch, experts say there is still some work to do on establishing electronic links between securities companies and settlement banks, a necessary step to ensure that transactions are processed without delay and safely.
“It’s very important,” said Han Kyung-tae, managing director of Tong Yang Securities Plc, one of seven underwriters that have been licensed by the SECC. “It’s got to be done on an electronic basis.”