Overbanked Cambodia tries to regain momentum

The number of commercial banks has increased from 17 to 27 in the past two years. New government measures aim to force consolidation. Meanwhile, though, many are reluctant to lend, and local businesses are suffering. Lawrence White reports from Phnom Penh.

Too many banks… again?

A COUPLE OF hundred metres past the airport on the way out of Phnom Penh, a bright orange sign and a showroom filled with small demonstration walls mark the location of the sales office of Primoris Brick and Paving Company. Rob Brough, an Australian lawyer-turned entrepreneur, launched the venture three years ago as the country’s construction boom was gearing up, offering a higher-quality brick than was usually available locally. By the time he was ready to start serious production the financial crisis had hit and only one of four planned factory lines is now active.

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