Cam McGrath

Cambodia’s central bank has raised the minimum capital requirement of banking institutions operating in the Kingdom, doubling the capital threshold for commercial and specialised banks, and increasing it more than ten-fold for microfinance institutions – a move some analysts predict will likely lead to more consolidation in the sector.

A prakas by the National Bank of Cambodia (NBC) published yesterday requires all commercial banks, including subsidiaries of foreign banks, to increase their minimum capital to the equivalent of $75 million.

Previously, commercial banks were required to hold a minimum capital of $37.5 million, while subsidiaries of foreign banks with an investment-grade ranking required just $12.5 million capital.

read more http://www.phnompenhpost.com/business/nbc-raises-capital-requirements-kingdoms-banks

subsidiaries of foreign banks with an investment-grade ranking required just $12.5 million capital.

Considering the deplorable state of European banks they may decide that should be raised as well.

Why are things so bad for Europe’s banks? General fears about bad debts related to crashing energy prices or emerging markets don’t cut it as an explanation for the 20% drop in bank shares this year. Those factors have been around for a while.

In truth, banks don’t face an acute crisis as in 2008. It is something that in some ways looks worse: a chronic profitability crisis that makes it impossible for banks to build up barely-adequate capital bases. And central banks may be powerless to stop it.

http://www.wsj.com/articles/europes-banks-a-chronic-illness-1454945216