Thursday, 16 September 2010

Credit war


via CAAI

Wednesday, 15 September 2010 21:59 Nguon Sovan and Jeremy Mullins


LEADING bankers are concerned that a new offer from Cambodia’s largest lender will undercut market rates, raising the possibility of a price war that could hit profitability.

Cambodian Public Bank (Campu Bank) is set to offer 6 percent interest on loans for customers now financed by other institutions, according to documents obtained yesterday. The offer would not be available to its current customers.

A Campu Bank document said that under the deal a borrower refinancing a US$100,000 loan would save $25,561.34.

Company officials claim the programme is both financially sustainable and common in other countries.

But competitors said yesterday the action could unleash a situation in which banks offer reduced rates in a bid to win back customers. The market rate for loan interest is now 10 to 12 percent ... read the full story in tomorrow’s Phnom Penh Post or see the updated story online from 3PM UTC/GMT +7 hours (New York 4AM, Los Angeles 1AM, Chicago 3AM, Paris 10AM, Vancouver 1AM, Sydney 6PM, Bejing 4PM, Tokyo 5PM, London 9AM, Johannesburg 10AM, Riyadh 11AM, Mumbai 1:30 PM)

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