One of the biggest state-owned banks in Indonesia, Mandiri Bank, begins to expand their reach to neighboring Southeast Asian countries, Cambodia and Laos. Khmer Times reported that the bank has already put large sums of investment although it has not begun its move yet.
“Prospects are more open in those two countries as they have just started to develop,” stated Mandiri Bank Corporate Secretary Rohan Nafas on Friday.
“We are still exploring what sectors in these countries would be best for us, whether banking or finance,” he added.
Accordingly, Mandiri Bank has a robust business performance recently. In H1, the growth is 11.1%.
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Prior to this plan, the bank planned to two Philippine banks. The plan, however, is cancelled due to unstable financial and banking industries.
Afterwards, Mandiri Bank is also asked whether they want to expand to Vietnam. In response, they have no intention to do so because the competition is tight.
In contrast, Cambodia and Laos have good markets. It is the reason of the expansion.
Banking and Financial Industry in Cambodia and Laos
Cambodia and Laos have shown much attention in the industry. The countries plan to aggressively elevate the said industries.
National Bank of Cambodia informed media about the growth. During the year’s first half, loans in the banking and micro-finance sectors rose by 22.4%.
In the banking sector, the value of all outstanding loans reached US$21.5 billion. Meanwhile in the micro-finance industry, it reached US$6.2 billion.
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In addition, Cambodia and Indonesia is currently boosting their bilateral trade. Also, Cambodia is highly promoting fintech.
Laos, additionally, also has similar growth and concern. The country seems to heavily reinforce the economic sectors.
In sum, these two countries current economic growth and stability are quite promising. This is the reason why Mandiri Bank is certain to invest and reach Cambodia and Laos. As for the bank itself, the execs say that they are ready to acquire smaller banks.