Question 1

What is SME Bank?

Accepted Answer

SME Bank, officially known as the Small and Medium Enterprise Bank of Cambodia Plc., is a state-owned commercial bank in Cambodia specializing in financial services for small and medium-sized enterprises. The bank is 100% owned by the Royal Government of Cambodia through the Ministry of Economy and Finance.

Operating as both a commercial bank and a policy bank, SME Bank provides affordable financing and banking services designed specifically to support the growth of Cambodia's SME sector. The bank operates under the technical and financial supervision of the Ministry of Economy and Finance and is regulated by the National Bank of Cambodia.

Question 2

When was SME Bank founded?

Accepted Answer

SME Bank was incorporated in the Kingdom of Cambodia as a state-owned bank under the Law on the General Statute of Public Enterprise with registration certificate Co. 0001M/2020 issued by the Ministry of Commerce on January 13, 2020. The bank obtained its commercial banking license from the National Bank of Cambodia on February 27, 2020, with permanent validity.

The bank was established with an initial capital budget of USD 100 million to address a critical gap in Cambodia's financial sector: providing better and more affordable access to finance for SMEs in key priority sectors. This initiative aligned with Cambodia's Industrial Development Policy 2015-2025, which identified the need for specialized financial support to promote economic diversification and expand export volumes.

Question 3

Where is SME Bank headquartered?

Accepted Answer

SME Bank's registered office is located at the MEF Business Development Center, OCIC Street, Phum Kien Khleang, Sangkat Chraoy Chongvar, Khan Chraoy Chongvar, Phnom Penh, Cambodia. The bank's main headquarters for customer-facing operations is situated at No. 30, Street Pasteur corner Street Prey Nokor, Sangkat Phsar Thmei Ti Muoy, Khan Doun Penh, Phnom Penh.

As a relatively new institution, the bank has been expanding its physical presence in Phnom Penh and has stated plans to develop a wider distribution network with new branches across Cambodia to better serve SME customers in various provinces.

Question 4

Where does SME Bank operate?

Accepted Answer

SME Bank operates primarily in Phnom Penh and is gradually expanding its presence throughout Cambodia. The bank's strategy includes developing a wider distribution network to reach SMEs across all provinces of Cambodia, with particular focus on key priority sectors including agro-businesses, tourism, manufacturing, and technology start-ups.

Through partnerships with payment service providers like Wing and TrueMoney, SME Bank customers can access banking services at approximately 20,000 agent locations throughout the country. This significantly improves accessibility for businesses in provinces far from the capital.

The bank also participates in the National Bank of Cambodia's Bakong payment system, which provides nationwide digital payment infrastructure connecting various financial institutions across Cambodia.

Question 5

What services does SME Bank offer?

Accepted Answer

SME Bank provides a comprehensive range of commercial banking and financing services tailored to small and medium enterprises:

Direct Lending Programs:
• Cambodia SME Scheme (CSS) - supporting viable SMEs
• Cambodia Women Entrepreneurs Scheme (CWES) - focused on women-owned businesses
• Cambodia Digital & Automation Scheme (CDAS) - supporting digital transformation
• Cambodia Micro Enterprise Scheme (CMES) - for micro-scale businesses
• Cambodia Recovery Support Scheme (CRSS) - assisting businesses impacted by economic challenges

Co-Financing Programs:
The SME Co-Financing Scheme (SCFS) provides financing up to KHR 2 billion or USD 500,000 at a 6.5% interest rate with a 7-year tenure. The bank partners with participating financial institutions including CAB Bank, Panda Commercial Bank, and Sacomebank Cambodia.

Deposit Products:
Business deposit accounts including current accounts and savings accounts with competitive interest rates.

Additional Services:
• Trade financing
• Business overdrafts
• Collateral-free loans up to USD 50,000 for qualified SMEs (grades A & B)
• Technical assistance and business advisory support
• Digital banking services including online account management

The bank emphasizes low interest rates, favorable terms, and simplified procedures compared to traditional commercial banks.

Question 6

What makes SME Bank unique?

Accepted Answer

SME Bank distinguishes itself through several key characteristics:

Government-Backed Mission: As a state-owned policy bank, SME Bank operates with a social mandate to promote economic diversification and support sectors prioritized by the Royal Government of Cambodia, including agro-processing, tourism, manufacturing, and tech start-ups. This mission-driven approach allows the bank to offer more favorable terms than purely commercial institutions.

Affordable Financing: The bank provides significantly lower interest rates and more flexible collateral requirements than traditional commercial banks. Qualified SMEs can access clean loans without collateral up to USD 50,000, removing a major barrier for many small businesses.

Integrated Support Services: Beyond financing, SME Bank provides technical assistance, business advisory support, and facilitates access to regional markets. The bank partners with organizations like Khmer Enterprise to offer combined financial and capacity-building support for entrepreneurs.

Focus on Underserved Sectors: The bank specifically targets SMEs in priority sectors that often struggle to access traditional financing, including businesses in industrial cluster zones, research and development in IT, and enterprises developing innovative products and services.

Question 7

What type of financial institution is SME Bank?

Accepted Answer

SME Bank is classified as a commercial bank with policy bank characteristics in Cambodia. It holds a full commercial banking license from the National Bank of Cambodia with permanent validity, allowing it to offer standard banking services including deposits, loans, and payment services.

However, unlike purely commercial banks that prioritize profit maximization, SME Bank operates as a development finance institution with a specific policy mandate. It functions as a specialized financial institution designed to serve the small and medium enterprise sector, with objectives that include promoting economic diversification, expanding export volumes, and supporting government industrial development policies.

This hybrid model is common in Southeast Asian countries where governments establish specialized banks to address market gaps and support strategic economic sectors. As a member of the Association of Banks in Cambodia, SME Bank operates under the same regulatory framework as other commercial banks while maintaining its focused mission on SME development.

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About SME Bank in Cambodia