The Governor of the National bank of Cambodia,

decides that:

Section 1:

a - National Bank means the National Bank of Cambodia

b - Commercial Bank means a Bank licensed to conduct the commercial banking business, including the branch of a foreign bank licensed to conduct such business.

c - Minimum Capital or Capital means the greater of :

Section 2 :

Each commercial bank shall maintain a deposit guarantee with National Bank equal to 5% of its minimum capital as defined in section 1 (c) of chapter I above. The National Bank shall give 3 moths notice of its intention to increase that percentage.

Section 3 :

A commercial bank whose paid up capital exceeds US$ five million shall mark an initial and minimum deposit guarantee of US$ 250,000 ( two hundred and fifty thousand US dollars ) or the equivalent in riel. The timing or the additional deposit needed to increase the deposit guarantee to the amount required in accordance with section I above in any case shall be decided by the National Bank.

Section 4 :

A commercial bank shall keep its capital deposit in either riel or US Dollars. A commercial bank may not incur any foreign exchange exposure beyond the limits established by the National Bank by making a deposit under this regulation. A commercial bank whose capital is expressed in a currency other than riel and which made or makes its deposit guarantee in riel shall adjust the amount of its deposit guarantee in riel so that the amount is always equivalent to 5% of the value of its capital, except for those bank whose deposit guarantee was made in riel between January 1993 and March 16, 1993.

Section 5 :

The National Bank shall not pay interest on the capital deposits mentioned above.

Section 6 :

Section 7 :

A commercial bank shall maintain its deposit as long as it remains open for business. It can only be reclaimed after the closure of a bank and when all liabilities of the commercial bank have been settled.

Section 8 :

A new commercial bank that fail to establish its capital deposit one week prior to its intended date of opening shall not be permitted to open until such deposit has been made . A commercial bank already conduction a baking business that fails to establish its capital deposit within one or two weeks of the date of this regulation shall be penalized one or two weeks’ interest respectively. Penalty interest shall be charged on late deposits at the rate applied by the National Bank to three months of riel deposits. A commercial bank that fails to make such deposit within 15 days of this regulation shall be liable to lose its license.

Section 9 :

A penalty incurred in respect of a late deposit shall be paid by the commercial bank concerned within two business days on the National Bank’s penalty notice, failing which the penalty interest shall be doubled.

Section 10 :

All former regulations that contradict with this regulation shall be abrogated.

This regulation shall be effective from the date of promulgation.

National Bank of Cambodia

Cha Rieng

Governor