Clark Beyond Borders, Beyond Banking

The ACLEDA Bank Story, 2005-2019
1. Auflage 2020
ISBN: 978-981-15-1687-0
Verlag: Springer Nature Singapore
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 322 Seiten

This book examines the experiences and good practices of ACLEDA Bank, Cambodia. Applicable to banks and microfinance institutions around the globe, it includes materials for classroom instruction on organizational development, financial sector development, the role of government and investors in supporting the financial market, and the benefits to customers.
Following on the previous publication When There Was No Money, which tells the ACLEDA story by tracing its history and various stages of organizational development in the financial sector as it evolved in Cambodia from 1991 to 2004, this book examines the 2nd decade in the bank's history, including its expansion to Lao PDR and Myanmar, and the launch of subsidiaries, such as ACLEDA Securities and the ACLEDA Institute of Business.
Adopting a documentary approach, the book presents case studies supported by current economic and financial literature, as well as stories from a wide range of interviews with the board, management, staff, customers, competitors and regulators.
Given its scope, the book offers a valuable resource for financial institutions, investors, researchers and students interested in financial inclusion, financial sector development, good governance of financial institutions, microfinance, aid effectiveness, post-conflict organizational development, and Cambodia.

Heather A. Clark is the author of When There Was No Money, a book covering the first decade of ACLEDA Bank's history. Ms. Clark's relationship with ACLEDA Bank Plc. and experience in Cambodia span two decades. In addition, she has over 25 years of experience working with microfinance banks, funding agencies, training institutes, and networks. She is a former Director of the UN Capital Development Fund's Microfinance Unit and has worked as a Senior Technical Advisor with the UNDP and USAID. She has also worked with NGOs, specialized banks and member-owned organizations, chiefly in South East Asia, East Africa, and Latin America.

Autoren/Hrsg.

Clark, Heather A.

Inhaltsverzeichnis

1;Foreword;11
1.1;Reference;13
2;Acknowledgments;14
3;Contents;17
4;Abbreviations;24
5;List of Figures;26
6;List of Tables;32
7;Part I: A Decade of Growth;33
7.1;Prologue;33
7.1.1;The Future Perspective;33
7.2;Reference;33
7.3;Chapter 1: Introduction: Building the Future—Beyond Borders, Beyond Banking;34
7.3.1;1.1 Part I: A Decade of Growth;37
7.3.2;1.2 Part II: Flight to Quality;38
7.3.3;1.3 Part III: ACLEDA Bank Plc.: Traditions and Transitions;38
7.3.4;1.4 Part IV: ACLEDA Bank Plc.: Expanding Beyond Borders, Beyond Banking;39
7.3.5;1.5 Epilogue;40
7.4;Chapter 2: The Big Picture: Cambodia Then, Cambodia Now (2004–2019);41
7.4.1;2.1 More than a Decade of Growth;41
7.4.2;2.2 Growth with Equity;45
7.4.3;2.3 Growth and Poverty;47
7.4.4;2.4 Competitiveness and Innovation;47
7.4.4.1;2.4.1 The Global Competitiveness Index (GCI);48
7.4.5;2.5 The Current and Future Advantage;51
7.4.6;References;52
8;Part II: Flight to Quality;55
8.1;Prologue;55
8.1.1;The Historical Perspective;55
8.2;References;57
8.3;Chapter 3: Cambodia’s Financial Market System (2004–2019): History, Structure, and Performance;58
8.3.1;3.1 An Introduction to Cambodia’s Financial Market System;58
8.3.1.1;3.1.1 Demand and Supply of Financial Services Fuel Economic Growth;58
8.3.1.2;3.1.2 A Responsive Regulatory Framework and Supporting Infrastructure Advance Financial Inclusion;59
8.3.2;3.2 Cambodia’s Financial Market System;62
8.3.2.1;3.2.1 A Brief Tour of the Financial Market System: Supporting Functions;63
8.3.2.2;3.2.2 A Brief Tour of the Financial Market System: Rules and Norms;64
8.3.2.3;3.2.3 At the Core: Customers and Financial Services Providers;65
8.3.3;3.3 An Inclusive Financial Market?;67
8.3.3.1;3.3.1 How Inclusive Is Cambodia’s Financial Sector?;68
8.3.3.2;3.3.2 Inclusion and Exclusion;70
8.3.3.3;3.3.3 The Relationship Between Financial Inclusion and Poverty Reduction?;70
8.3.4;3.4 The Core Market and the Vital Statistics About Market Expansion;72
8.3.4.1;3.4.1 Serving the Market Well;72
8.3.4.2;3.4.2 Creeping Delinquency and Increasing Non-Performing Loans;74
8.3.4.3;3.4.3 The Discovery of an Innovative Business Model;76
8.3.4.4;3.4.4 The Return on Innovation;77
8.3.4.5;3.4.5 Serving the Market Better;77
8.3.5;3.5 Rules and Norms in Practice;78
8.3.5.1;3.5.1 The Consultative Process and Product;78
8.3.5.2;3.5.2 Truth in Lending;80
8.3.5.3;3.5.3 The Precedent for Market Transparency;81
8.3.5.4;3.5.4 Opening the Financial Market to New Entrants;82
8.3.5.5;3.5.5 The Precedent for Experimentation;83
8.3.5.6;3.5.6 The Importance of Norms;84
8.3.6;3.6 Supporting Functions;84
8.3.6.1;3.6.1 Capital Markets: The Cambodia Securities Exchange (CSX);84
8.3.6.2;3.6.2 Information Services;88
8.3.6.2.1;3.6.2.1 Research, Advocacy, and Coordination: Industry Associations;88
8.3.6.2.2;3.6.2.2 The Credit Bureau of Cambodia (CBC);88
8.3.6.3;3.6.3 Financial Consumer Education;89
8.3.6.4;3.6.4 Financial Consumer Protection;90
8.3.7;References;91
8.4;Chapter 4: Cambodia’s Financial Market System: Inclusive Dynamics, Impending Crisis?;95
8.4.1;4.1 Introduction;95
8.4.1.1;4.1.1 Five Factors for Concern;96
8.4.2;4.2 Proliferation of Small Credit Operators at the “Bottom of the Pyramid”;97
8.4.3;4.3 The System Capacity to Absorb More Debt Nears the Breaking Point;99
8.4.3.1;4.3.1 Tracking the Evidence;99
8.4.3.1.1;4.3.1.1 Traditional Measurement Inadequate to Detect Early Warning Signs;99
8.4.3.1.2;4.3.1.2 Borrower Difficulty Meeting Financial Commitments;100
8.4.3.1.3;4.3.1.3 Aggressive Competition: Number of Microcredit Loans Outstanding;101
8.4.3.1.4;4.3.1.4 Aggressive Competition: Rapid Growth in Loan Size and MFI Portfolio Size;102
8.4.3.1.5;4.3.1.5 Average Loan Outstanding to GDP Per Capita;103
8.4.3.1.6;4.3.1.6 Multiple Borrowing;105
8.4.3.2;4.3.2 The Unique Dynamics of Cambodia’s Micro-lending Market;106
8.4.3.2.1;4.3.2.1 A Different Pattern of Over-indebtedness;106
8.4.4;4.4 The Interest Rate Cap on Microcredit Fuels Expansive Borrowing;107
8.4.4.1;4.4.1 The Market in Cambodia Worked Well to Lower Micro-lending Interest Rates;108
8.4.4.2;4.4.2 Do Interest Rate Caps Strengthen the Market for Borrowers and Lenders?;109
8.4.4.3;4.4.3 Market Research Around the World;110
8.4.4.4;4.4.4 Interest Rate Caps as a Tool to Curb Debt Stress;111
8.4.4.5;4.4.5 Interest Rate Cap Performance After Two Years of Implementation;111
8.4.4.6;4.4.6 How Did the Interest Rate Cap Perform as “a Good Tool to Curb ‘Debt Stress’?”;112
8.4.4.7;4.4.7 Reversing the Trend;113
8.4.4.7.1;4.4.7.1 Market Behavior Prior to the Interest Rate Cap;113
8.4.4.8;4.4.8 Abating a Debt Crisis: Six Important Lessons from Cambodia So Far;115
8.4.4.9;4.4.9 Summary and Prospects;118
8.4.5;4.5 Mergers and Acquisitions at the Top of the Pyramid;119
8.4.5.1;4.5.1 The First Merger and Acquisition: Sathapana Limited;120
8.4.5.2;4.5.2 The Next Candidate: Thaneakea Phum Cambodia, Ltd.;122
8.4.5.3;4.5.3 Then It Was Another MFI’s Turn: Hattha Kaksekar Limited;122
8.4.5.4;4.5.4 The Latest Change of Ownership in 2017: PRASAC MDI;123
8.4.5.5;4.5.5 Ownership of Cambodia’s Leading MDIs 2012–2019;124
8.4.6;4.6 Taxation Target;127
8.4.7;4.7 Conclusion: Rational or Irrational Exuberance?;129
8.4.8;References;130
9;Part III: ACLEDA Bank Plc.: Traditions and Transitions;133
9.1;Prologue;133
9.1.1;The Historical Perspective;133
9.2;Chapter 5: ACLEDA Bank Plc.: Principles and Practices;137
9.2.1;5.1 Introduction;137
9.2.2;5.2 The Birth of an Ethical Bank;139
9.2.2.1;5.2.1 The Local Economic Development Agencies (LEDAs);140
9.2.2.1.1;5.2.1.1 The Pioneering ACLEDA Staff;140
9.2.2.1.2;5.2.1.2 The First Organizational Breakthrough;141
9.2.2.2;5.2.2 Becoming ACLEDA NGO: The Professional Organization;141
9.2.2.2.1;5.2.2.1 ACLEDA’s First Corporate Culture;143
9.2.2.2.2;5.2.2.2 Shared Core Values Develop into a Set of Corporate Ethics;143
9.2.3;5.3 The Crossroads: Options for the Future;144
9.2.3.1;5.3.1 “If We Listen to Customers, We Can Build It.”;144
9.2.3.2;5.3.2 “Understand the Customer, Develop the Product to Suit the Customer, and Provide Excellent Customer Service”;147
9.2.3.3;5.3.3 “Capacity Leads, Capital Follows”;150
9.2.4;5.4 The Ethical Bank Emerges;151
9.2.4.1;5.4.1 Traditions and Transitions;152
9.2.4.1.1;5.4.1.1 No Tolerance for Corruption;153
9.2.4.1.2;5.4.1.2 Technology, Fintech, and Things that Light Up in the Night;153
9.2.4.1.3;5.4.1.3 Staff Ownership and Governance;155
9.2.4.1.4;5.4.1.4 Professional Development: A Learning and Teaching Organization;155
9.2.5;5.5 Formalizing the Contribution to Cambodia’s Microfinance Sector;156
9.2.6;References;157
9.3;Chapter 6: Pioneers and Protégés;158
9.3.1;6.1 Introduction;158
9.3.2;6.2 The ACLEDA NGO: Ownership and Governance;159
9.3.2.1;6.2.1 A Focus on Sustainability;160
9.3.2.2;6.2.2 The Benefits and Challenges of Participatory Governance;161
9.3.2.2.1;6.2.2.1 Organizational Critical Thinking Advances;162
9.3.3;6.3 The Origins of ACLEDA Bank Ltd.;163
9.3.3.1;6.3.1 Outgrowing NGO Status;164
9.3.3.2;6.3.2 Counting with Support of the National Bank of Cambodia (NBC);165
9.3.3.3;6.3.3 Examining Options for Ownership and Governance;165
9.3.3.4;6.3.4 Implementing Organizational Change and Financial Mechanisms;166
9.3.4;6.4 The ACLEDA Staff Association and ACLEDA Financial Trust;167
9.3.4.1;6.4.1 Creating the ACLEDA Staff Association (ASA);167
9.3.4.1.1;6.4.1.1 The Thinking Behind the Creation of ASA Inc.;168
9.3.4.1.2;6.4.1.2 Lessons About Structuring Employee Stock Ownership;168
9.3.4.1.3;6.4.1.3 Staff Ownership: A Nonnegotiable Position;169
9.3.4.2;6.4.2 The ACLEDA Financial Trust (AFT);170
9.3.4.2.1;6.4.2.1 The Original Intent of a Trust Law in Cambodia;170
9.3.4.2.2;6.4.2.2 The Disappointment of a Focus Only on Microfinance;171
9.3.4.2.3;6.4.2.3 The Long-Term Objectives of the ACLEDA Financial Trust (AFT);171
9.3.5;6.5 Summary and Conclusion: The Gamble and the Promise of ACLEDA Bank Plc;172
9.3.5.1;6.5.1 Preparing to Serve the Next Generation Well;175
9.3.6;References;175
9.4;Chapter 7: Products and Performance;177
9.4.1;7.1 Introduction;178
9.4.2;7.2 ACLEDA Bank Values Influence the Wider Financial Market System;178
9.4.2.1;7.2.1 The Ministry and the Motorcycle;180
9.4.2.2;7.2.2 Digital Pioneers;182
9.4.3;7.3 Product Innovation: Two Decades of Lessons About Products and Performance;183
9.4.3.1;7.3.1 Lesson 1: Ensure Safety and Ready Availability of Customer Deposits at All Times;183
9.4.3.2;7.3.2 Lesson 2: Economic Growth Rates Influence the Uptake of Products and Services;184
9.4.3.3;7.3.3 Lesson 3: Match Customer Demand to the Organization’s Capacity to Deliver;186
9.4.3.4;7.3.4 Lesson 4: Match Customer Demand for the Product to the Organization’s Capacity to Manage the Product’s Risk;187
9.4.3.4.1;7.3.4.1 Features of the Balloon Loan Product Designed for Agriculture;188
9.4.3.4.2;7.3.4.2 A Responsible Product Designed for Agriculture;188
9.4.3.4.3;7.3.4.3 Resolving the Crisis, Strengthening Management;189
9.4.3.5;7.3.5 Lesson 5: Innovation in the Market Is Dynamic; It Encourages the Competition to Work Harder;190
9.4.3.5.1;7.3.5.1 Little Competition for a New and Highly Valued Product;191
9.4.3.5.2;7.3.5.2 The Competition Emerges with a New Model;192
9.4.3.5.3;7.3.5.3 Lessons About Market Dynamism;193
9.4.3.6;7.3.6 Lesson 6: Innovation Is a Mainstay of the ACLEDA Bank Plc. Business Culture;193
9.4.3.7;7.3.7 Technology, Physical Infrastructure, and Human Talent;194
9.4.4;7.4 Summary and Conclusions;196
9.4.4.1;7.4.1 Product and Service Innovations Influence the Market;197
9.4.5;References;199
10;Part IV: ACLEDA Bank Plc.: Expanding Beyond Borders, Beyond Banking;200
10.1;Prologue;200
10.1.1;Invitations: Near and Far;200
10.2;Chapter 8: Building ACLEDA Bank Lao Ltd.;205
10.2.1;8.1 The Lao People’s Democratic Republic (Lao PDR) Today;206
10.2.1.1;8.1.1 The Lao PDR: A Brief Profile;206
10.2.1.2;8.1.2 Growth and Growth Sectors of the Economy;207
10.2.1.3;8.1.3 Poverty;208
10.2.1.4;8.1.4 Southeast Asia’s Techno Boom;210
10.2.1.5;8.1.5 The Business Environment;212
10.2.1.6;8.1.6 The Demographic Dividend;212
10.2.2;8.2 The Lao PDR Banking Sector;214
10.2.2.1;8.2.1 Retail Banking in the Formal Financial Sector;214
10.2.2.2;8.2.2 Retail Banking in the Informal Sector;215
10.2.3;8.3 Access to Financial Services and Financial Inclusion;217
10.2.4;8.4 Regulatory Environment for the Banking Sector;220
10.2.4.1;8.4.1 Interest Rate Caps;220
10.2.4.1.1;8.4.1.1 Interest Rate Caps and Spreads on Lending and Deposits;221
10.2.4.2;8.4.2 Banking Sector Capitalization, Restrictions, Credit Growth, and NPLs;221
10.2.5;8.5 Regulation Promoting and Inhibiting Financial Inclusion;222
10.2.6;8.6 Invitation: “Please Come As You Are!” - A Welcome to Build ACLEDA Bank Lao, Ltd.;224
10.2.6.1;8.6.1 The “Highs and Lows of ABL Performance”;226
10.2.6.2;8.6.2 A New Kind of Bank;227
10.2.6.3;8.6.3 Growing Pains of a New Start-Up: ABL 2008–2011;230
10.2.7;8.7 ACLEDA Bank Lao Ltd.: Year-on-Year Performance;232
10.2.7.1;8.7.1 Bumps in the Road: The Early Years 2008–2011;232
10.2.7.2;8.7.2 Good Practice and Good Fortune;235
10.2.7.3;8.7.3 Smooth Sailing?: The Latter Years 2011–2018;236
10.2.8;8.8 Lessons;238
10.2.9;8.9 Epilogue: 2019—A New Beginning;240
10.2.10;References;241
10.3;Chapter 9: Banking on the Future: ACLEDA MFI Myanmar Co. Ltd. and the Evolving Financial Sector of the Republic of the Union of Myanmar;243
10.3.1;9.1 The Rebirth of ACLEDA Microfinance;245
10.3.2;9.2 The Republic of the Union of Myanmar Today: An Overview;247
10.3.2.1;9.2.1 The Economy: Overall Performance and Growth Sectors;247
10.3.2.2;9.2.2 Poverty;249
10.3.2.3;9.2.3 Human Development Index;250
10.3.2.4;9.2.4 Doing Business in Myanmar;251
10.3.2.5;9.2.5 Southeast Asia’s Techno Boom: Focus on Myanmar;255
10.3.3;9.3 The Financial Sector;256
10.3.3.1;9.3.1 Financial Inclusion;257
10.3.3.2;9.3.2 Retail Microfinance: A Big Part of the Financial Sector in Myanmar;258
10.3.3.2.1;9.3.2.1 Microfinance Continues to Grow as a Significant Part of the Financial Sector;260
10.3.3.2.2;9.3.2.2 Key Indicators and Trends, Policies, and Promises;261
10.3.4;9.4 Banking on the Future: The Journey Begins;263
10.3.4.1;9.4.1 Regulatory Barriers to Financial Inclusion;263
10.3.4.2;9.4.2 The Experience of Parents and Sisters;264
10.3.4.2.1;9.4.2.1 Lessons from ACLEDA Bank in Cambodia and ACLEDA Bank Lao;265
10.3.4.2.2;9.4.2.2 Progress Continues in Myanmar;266
10.3.4.3;9.4.3 AMM Performance;267
10.3.4.4;9.4.4 Behind Great Numbers Are Great People;271
10.3.4.5;9.4.5 A Shining Star;272
10.3.4.6;9.4.6 The Last Word;273
10.3.5;References;273
10.4;Chapter 10: ACLEDA Institute of Business: A New Generation of Bankers;276
10.4.1;10.1 Higher Education in Cambodia;278
10.4.1.1;10.1.1 Strategy and Expenditure;279
10.4.1.2;10.1.2 A Long and Difficult Journey;280
10.4.1.3;10.1.3 A Refreshing Vision Keeps the Main Goal Insight;282
10.4.1.4;10.1.4 Stumbling Blocks: Access, Quality, and Composition;285
10.4.2;10.2 ACLEDA Institute of Business: The Dream;286
10.4.2.1;10.2.1 ACLEDA Institute of Business: Joining a “Flight to Quality”;288
10.4.2.2;10.2.2 AIB and Its Many Transitions;288
10.4.2.2.1;10.2.2.1 The ACLEDA Training Division (2000–2008);290
10.4.2.2.2;10.2.2.2 ASEAN Regional Microfinance Training Center (AARMC) (2008–2011);290
10.4.2.2.3;10.2.2.3 The ACLEDA Training Center (2011–2016);291
10.4.2.3;10.2.3 The Birth of the ACLEDA Institute of Business (2016–Present);293
10.4.2.4;10.2.4 ACLEDA Institute of Business: The First Day of School;295
10.4.2.5;10.2.5 ACLEDA Institute of Business: Performance;296
10.4.2.6;10.2.6 ACLEDA Institute of Business: Discovering a New Business Model;297
10.4.3;References;298
11;Epilogue;300
11.1;The Changing Landscape in the Financial Sector: Cambodia’s Microfinance Segment, Ownership, and Governance;300
11.1.1;A Question of Governance in MFI Ownership Transitions;301
11.1.2;Ownership Transitions and Responsibilities;302
11.2;The NBC Rules and Informs;303
11.2.1;Increasing Vigilance of Governance Practices;303
11.2.1.1;Independent Directors Play an Important Role for Banking Establishments;303
11.2.1.2;Solid Governance Within the ACLEDA Group Receives Attention;304
11.2.2;Fintech in Cambodia and in the Region;305
11.2.3;Financial Education Is a Fairly New Priority: Is Financial Consumer Protection Far Behind?;305
11.3;ACLEDA Bank Plc. Transitions and Transformations: Past and Future;306
11.3.1;The Drive to Learn, Adapt, and Innovate Increased with Time;307
11.3.2;The People of ACLEDA Care About Their Customers and Their Bank;308
11.3.3;They Are Builders;309
11.3.3.1;The ACLEDA Staff Association (ASA): The Pioneer of Staff Association Ownership in MFIs and Banks in Cambodia;309
11.3.3.2;ACLEDA Securities Plc.;309
11.3.3.3;The Drive for Institutional Innovation;310
11.4;Banking Beyond Borders;311
11.4.1;Microfinance in Myanmar: Full Circle;311
11.4.2;Lao PDR: A Small Enterprise Bank in the Making?;311
11.5;Beyond Boundaries: Banking to Higher Education;313
11.5.1;ACLEDA Institute of Business (AIB): The Beginnings;313
11.5.2;ACLEDA Institute of Business (AIB): The Rationale;313
11.5.3;ACLEDA Institute of Business (AIB): Performance;314
11.5.4;ACLEDA Institute of Business (AIB): Lessons from the First Years;315
11.6;A Retrospective Journey: 2005–2020;316
11.7;References;317
12;Index;318