Table 2: MFI Market Share as of December 31, 2000
Institution
Loans Outstanding
Percent of Total
Number of Borrowers
Percent of Total
1
ACLEDA
$16,271,477
55%
60,860
16%
2
PRASAC
$3,256,663
11%
34,882
9%
3
EMT
$2,681,166
9%
73,352
20%
4
CRS/TCP
$937,603
3%
25,845
7%
5
CCB
$505,285
2%
5,250
1%
Sub-Total
$23,652,194
81%
200,186
54%
All Others
$5,687,601
19%
170,465
46%
GRAND TOTAL
$29,339,795
370,651
SOURCE: Elizabeth O. Abrera and Mike Spingler. Case Study Notes for Establishing National Structures in Microfinance, Catholic Relief Services Cambodia, 2001.
To support the expansion of rural credit and savings services, the government enacted the Law on Banking and Financial Institutions on November 18, 1999. It also issued a Prakas (statute) on the licensing of Specialized Banking Institutions (SBIs) and Microfinance Institutions (MFIs). These laws mandate the registration and licensing of entities involved in credit provision and savings activities by the NBC—the National Bank of Cambodia (the Central Bank). Given the size of its portfolio and the depth of its outreach, the CRS Thaneakea Phum Program is one of five to seven major NGO operators in Cambodia that is expected to transform its operations into a regulated MFI.4 The passage of the Financial Institutions Law, after almost five years of parliamentary discussions, has rendered moot the plans of the TPP to become an apex lending institution to NGO credit operators, as the law prohibits this option. Moreover, the draft NGO law would bar organizations solely involved in credit and savings/ microfinance activities from being considered NGOs. The logic behind this initiative assumes that financial services provision is a for-profit undertaking and that NGOs, in contrast, are nonprofit organizations. Uncertainty regarding the legal identity of NGOs as
4
Ibid.
13