High interest paid on deposits in banks in Cambodia
- Bitte_Kein_Lexus
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Re: High interest paid on deposits in banks in Cambodia
Aren't they Malaysian? They invest more in developing countries and need to pay out more because of competition.
Ex Bitteeinbit/LexusSchmexus
- CaliforniaGuy
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Re: High interest paid on deposits in banks in Cambodia
Higher rates are not paid because of competition, they are paid because of risk. Banks loan out money, and they get the money by borrowing. If their loans are risky, then they must pay higher rates to attract deposits to fund those riskier loans. I can borrow money from my bank in the U.S. on my business line of credit for less than what many of these banks are paying their depositors in interest. That should give you a clue about the risk. Not saying you will loose money, just that there is a higher risk. There is no such thing as a free lunch and if it sounds too good to be true, you can bet it is. Higher returns = higher risk = higher potential for capital loss.Bitte_Kein_Lexus wrote:Aren't they Malaysian? They invest more in developing countries and need to pay out more because of competition.
I saw the high rates too. If they have to pay that much I would be worried. All of the construction around PP doesn't make much sense to me based on the dismal growth rate of the economy. I would guess that there are a lot of very risky loans these banks have made. I don't know if there is any kind of deposit insurance here like they have in the U.S. I would check that out first before depositing your life savings in a bank here at those rates.
I wish I knew a whole lot more, or a whole lot less.
Re: High interest paid on deposits in banks in Cambodia
Very good analysis, Calif Guy.
Since I posted, I've heard of substantially higher rates - 7% and more offered by s called micro finance outfits that may or may not be banks. Their loans sound pretty risky in that many are involved in providing credit to the recently poor to buy stuff on offer in the likes of Aeon Mall.
Question - is, for example, Maybank in Cambo a part of Maybank the main Malaysian entity or is it a separate Cambo-charted bank that will sink or swim on the strength of its Cambo loan portfolio?
Since I posted, I've heard of substantially higher rates - 7% and more offered by s called micro finance outfits that may or may not be banks. Their loans sound pretty risky in that many are involved in providing credit to the recently poor to buy stuff on offer in the likes of Aeon Mall.
Question - is, for example, Maybank in Cambo a part of Maybank the main Malaysian entity or is it a separate Cambo-charted bank that will sink or swim on the strength of its Cambo loan portfolio?
Re: High interest paid on deposits in banks in Cambodia
I seem to recall a poster from the other forum having deposited a nice sum for a one year CD at a very high interest rate at a Cambodian Bank some time ago. Just before the one year was up, he was informed by that bank that the deal was cancelled and that he could go pick up a check for his initial investment amount back...no interest. I suppose he was quite lucky to get his money back at all. That institution used to advertise on that site for a while.
Remember what happened to depositors in Icelandic banks before 2008. They were offering over 8% when 2% was the norm. That didn't work out so well either.
Remember what happened to depositors in Icelandic banks before 2008. They were offering over 8% when 2% was the norm. That didn't work out so well either.
Re: High interest paid on deposits in banks in Cambodia
I've done it a few times here in Cambodia at around 10%, though not in about a decade. Always worked out fine and they always paid out as promised, though at least a couple of the banks I did it at don't exist anymore.
Once had a bunch of money in a Mayaysian bank here in Cambodia in a low interest standard savings account. Bank went tits up and closed. Cambodian government seized control, sold off their assets and reimbursed depositors. I got it all back except for a small amount, though it did take some time.
Once had a bunch of money in a Mayaysian bank here in Cambodia in a low interest standard savings account. Bank went tits up and closed. Cambodian government seized control, sold off their assets and reimbursed depositors. I got it all back except for a small amount, though it did take some time.
LTO Cambodia Blog
"Kafka is 'outdone' in our country, the new fatherland of Angkor" - Norodom Sihanouk
"Kafka is 'outdone' in our country, the new fatherland of Angkor" - Norodom Sihanouk
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Re: High interest paid on deposits in banks in Cambodia
Look at the lending rates. We looked into a mortgage from a bank in Cambodia... 11-14%. Same loan in the US would be 3-5%.Otis wrote:I'm still curious about why the dollar interest rate from a big multi-national bank like Maybank is about 4 times the rate avail in US. Any info?
Profits vs Expenses. When you deposit money, that's what they lend out... so if they're earning 11%, they can pay you 5% and still make money. From there it's just a bidding war on trying to GET your money so they have a product to "sell".
- StroppyChops
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Re: High interest paid on deposits in banks in Cambodia
Western Union paid 75 US cents to the Oz Dollar this week... I almost felt like a Zimbabwean.
Bodge: This ain't Kansas, and the neighbours ate Toto!
Re: High interest paid on deposits in banks in Cambodia
What do you mean "almost"? You mean you aren't?I almost felt like a Zimbabwean
- StroppyChops
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Re: High interest paid on deposits in banks in Cambodia
C'mon man, you KNOW I'm Nigerian. Why you gotta be so mean? You know I'm sensitive about my heritage.logos wrote:What do you mean "almost"? You mean you aren't?I almost felt like a Zimbabwean
Bodge: This ain't Kansas, and the neighbours ate Toto!
- frank lee bent
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Re: High interest paid on deposits in banks in Cambodia
westpac rate 0.737 yesterday
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