Why are bank fixed deposit interest rates so high.
Why are bank fixed deposit interest rates so high.
ACLEDA give 6% if you leave your money in 3 years.The UK gives me just over 1%.
6% is more than buying medium risk stocks and shares and the bank has been around forever.
Why so high?
6% is more than buying medium risk stocks and shares and the bank has been around forever.
Why so high?
And the UK bank gets cheap money from government/IMF at silly interest rates so they don’t need or care to make money from peoples deposits but will charge you silly money to borrow money or on a credit card.
Mortgages are different as they sell the debt off so they still make money and it’s not a liability for them. (Or something like that).
MFI average loan is $1600. That means they have shit loads of them that reduce risk, but labor is cheap so they can afford to employ people to manage it. I think the default is still ridiculously low and much lower than western countries but the rates are higher.
That’s why all of the big MFI are owned by large international banks now. It’s an untapped growing market.
Mortgages are different as they sell the debt off so they still make money and it’s not a liability for them. (Or something like that).
MFI average loan is $1600. That means they have shit loads of them that reduce risk, but labor is cheap so they can afford to employ people to manage it. I think the default is still ridiculously low and much lower than western countries but the rates are higher.
That’s why all of the big MFI are owned by large international banks now. It’s an untapped growing market.
pew, pew, pew, pew!
- vladimir
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Now? Meaning from when? I vaguely remember being shot down in flames by the usual suspects for even daring to suggest foreign bankers were heading micro-financing institutes, despite pictures of their public corporate structure being posted, with nary a Khmer face in sight..
And yet, it seems, history has proved me right. Doesn't happen every day.
ירי ילדים והפצצת אזרחים דורש אומץ, כמו גם הטרדה מינית של עובדי ההוראה.
Stop stalking me you quirky cunt.vladimir wrote: ↑Tue Apr 30, 2019 8:43 pmNow? Meaning from when? I vaguely remember being shot down in flames by the usual suspects for even daring to suggest foreign bankers were heading micro-financing institutes, despite pictures of their public corporate structure being posted, with nary a Khmer face in sight..
And yet, it seems, history has proved me right. Doesn't happen every day.
pew, pew, pew, pew!
Can either of you actually provide a real example?vladimir wrote: ↑Tue Apr 30, 2019 8:43 pmNow? Meaning from when? I vaguely remember being shot down in flames by the usual suspects for even daring to suggest foreign bankers were heading micro-financing institutes, despite pictures of their public corporate structure being posted, with nary a Khmer face in sight..
And yet, it seems, history has proved me right. Doesn't happen every day.
Sure.NotABogan wrote: ↑Wed May 08, 2019 11:28 amCan either of you actually provide a real example?vladimir wrote: ↑Tue Apr 30, 2019 8:43 pmNow? Meaning from when? I vaguely remember being shot down in flames by the usual suspects for even daring to suggest foreign bankers were heading micro-financing institutes, despite pictures of their public corporate structure being posted, with nary a Khmer face in sight..
And yet, it seems, history has proved me right. Doesn't happen every day.
Of what?
pew, pew, pew, pew!
- Orichá
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Well, not many may have noticed, but about the same time that the prime minister decreed that MFI's could not lend at rates higher than 18%, many of them began selling large stakes to foreign banks, as you can see documented in this article from the Phnom Penh Post:vladimir wrote: ↑Tue Apr 30, 2019 8:43 pmNow? Meaning from when? I vaguely remember being shot down in flames by the usual suspects for even daring to suggest foreign bankers were heading micro-financing institutes, despite pictures of their public corporate structure being posted, with nary a Khmer face in sight..
And yet, it seems, history has proved me right. Doesn't happen every day.
https://www.phnompenhpost.com/business/ ... mfi-sector
However, I am a little bit worried that their enthusiasm may be temporary and the sector may not be as healthy as one other poster above assumes. For example, if EBA (Everything But Guns) favored-nation trade status is rescinded, then, well... maybe some things will change. A lot depends on the ability of local people to create a domestic economy.
https://www.just-style.com/news/eu-begi ... 35583.aspx
But where I live, for example, the branch office of AMK -- one of the major MFIs in Cambodia -- has been forced to move twice as rents in the city proper became too high. Now, the bank is way out on Highway 4, following the same pattern of displacement that has also forced Cambodian locals to move out of Sihanoukville, too.
Besides MFIs seeing foreign bank and business investment, ordinary Cambodian banks have also received a lot of foreign investment: a good example is the ABA Bank, which will soon be 100% Canadian-owned, as their board has just approved a buyout of the remaining 10% of all shares -- (the National Bank of Canada already owns 90% of ABA).
"Storytelling reveals meaning without committing the error of defining it."
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Thanks, time to move away from ABA permanently then. It's just became as bad as a western bank now. Very low interrest rates for deposits (probably the difference is used to pay the losses/share holders of National Bank of Canada), automatic machines replacing tellers, registration through the app for most services.....Orichá wrote: ↑Fri May 17, 2019 3:11 pmBesides MFIs seeing foreign bank and business investment, ordinary Cambodian banks have also received a lot of foreign investment: a good example is the ABA Bank, which will soon be 100% Canadian-owned, as their board has just approved a buyout of the remaining 10% of all shares -- (the National Bank of Canada already owns 90% of ABA).
Why would I care? I'm Khmer
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Rule of thumb is higher interest means higher risk.
"Not my circus, not my monkeys" - KiR
LOLC pay 5% on 'instant access' (passbook) Dollar accounts and are hinting that 24/7 atm access will soon be available. Interest paid monthly.
https://www.lolc.com.kh/eng/index.aspx
Branch on Monivong.
https://www.lolc.com.kh/eng/index.aspx
Branch on Monivong.
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