About Us

Small and medium enterprises (SMEs) play a crucial role in contributing to socio-economic development in an inclusive manner. They are considered the backbone of the national economy, meeting local demand for goods and services while also contributing to improved livelihoods through increased income and employment, enhancing Gross Domestic Product (GDP), and boosting exports. However, the development and management of the SME sector face several challenges, including: 1- Informality (operating outside the formal system) 2- Lack of capital for business expansion 3- Limited technical knowledge and skills.

In response to these challenges, the Royal Government of Cambodia established the “SME Bank” to help address the problem of limited access to financing.

The Bank was officially licensed as a commercial bank by the National Bank of Cambodia on February 27, 2020, and operates under the technical and financial oversight of the Ministry of Economy and Finance. The Bank’s primary objective and strategic direction is to provide concessional financing (soft loans) to support the development of SMEs, with the aim of promoting economic diversification and exports, in line with the policies set forth by the Royal Government.

In nearly four years of operation, SME Bank has been recognized as a leading policy bank in providing concessional financial services to support SMEs, with a strong focus on priority sectors, including:

Food manufacturing and processing encompass the conversion of agricultural commodities or plant-based materials into consumable food for humans. This is achieved through primary or whole processing, employing both machinery and manual labor.
Manufacturing enterprises that produce consumables, parts, or components to supply other manufacturers, process waste, and produce goods for the tourism industry.
Research and development in the field of information technology, including the provision of innovative system management services. This refers to the creation and supply of IT services linked to business and e-commerce.
Enterprises located in the SMEs Cluster Zone.
Enterprises that produce medical products and medicines, referring to businesses that manufacture equipment, facilities, and pharmaceuticals for the healthcare sector.
Enterprises that provide services to support other businesses in priority sectors, as defined by the government. This refers to businesses that distribute and provide services to other priority sectors, including those with potential growth and those impacted by COVID-19.

SME Bank has made a remarkable contribution to the royal government by addressing the lack of access to finance for SMEs. To achieve this goal, the Bank has continuously implemented co-financing schemes with Participating Financial Institutions (PFIs) and direct lending schemes which target specific segments of enterprises. It primarily focuses on the development of products and services. The Bank is also committed to expanding its distribution networks and developing its human resources.

To be the Best and Preferred SME Bank in Cambodia, providing affordable financing, easy accessibility, technical support and excellent customer experience.

To provide efficient and sustainable financing and commercial banking services to support SMEs to promote economic diversification and exports in line with government policy.

VALUES

We believe that we have a part to play in providing affordable and value-added banking services towards the development of Small and Medium Enterprises whilst exceeding the expectations of our employees, customers and other stakeholders. We aspire to achieve this by living up to our core values, “IPACE”.

CORPORATE STRUCTURE

Chairman's Statement

On behalf of the Board of Directors of the Small and Medium Enterprise Bank of Cambodia Plc. (“SME Bank”), I am honored to present the Annual Report summarizing the Bank’s performance in 2024. These results reflect our firm commitment and efforts, as a policy bank to support the development of small and medium enterprises (SMEs) which is recognized as the backbone of the economy.

Indeed, in 2024, the global economy continued to make gradual progress toward recovery. However, it remained by numerous challenges and facing uncertainty. These challenges included: 1- Negative impact from the prolonged Russia-Ukraine war, the Israel-Hamas conflict, the rise of protectionist policies, and geopolitical and geo-economic fragmentation. These issues not only disrupted supply chains and led to rising commodity prices, but also created and intensified barriers to international trade, investment flows, technology transfer, human mobility, and global payment systems. 2- The frequent occurrence of severe natural disasters around the world due to climate change, which negatively impacted the progress of socio-economic development and food security.

As a result, the global economy in 2024 is projected to grow by only 3.2%, reflecting a slow and gradual recovery in private consumption, investment flows, and international trade.

In this context, Cambodia’s economy is forecasted to continue growing robustly, with a rate of 6.0% in 2024. This is due to: 1- The gradual recovery of the global economy, especially the major trading partners; and 2- The outcomes of in-depth structural reforms over recent years, along with the implementation of growth-promoting policies and measures, particularly those highlighted and reinforced under the framework of the “Pentagonal Strategy – Phase I.” These efforts have begun to yield tangible results, contributing to the development of a resilient business and trade ecosystem, which forms a strong foundation for driving national economic growth.

Despite the continued uncertainty in the global economy, Cambodia’s financial sector remains stable and resilient. This is reflected by a strong macro-prudential indicators, including the liquidity coverage ratio and capital adequacy ratio for both commercial banks and microfinance institutions. Although non-performing loans (NPLs) in both commercial banks and MFIs have increased, they remained at manageable levels.

In this context, SME Bank has continued to actively fulfill its mission by promoting the development of SMEs in Cambodia through the providing of concessional loans. As of the end of 2024, SME Bank has extended direct loans to 457 enterprises, totaling USD 122.4 million, increasing by a 42% compared to 2023. Among these, loans provided to priority sectors such as manufacturing, assembly, processing, and agro-industry under highly concessional terms amounted to approximately USD 61 million, accounting for 50% of total direct lending.

Meanwhile, loans provided to women entrepreneurs, which is also a priority, reached approximately USD 52.2 million, representing 43% of total direct lending.

SME Bank remains firmly committed to support SMEs in alignment with its vision and mission through the ongoing improvement and easing credit criteria, development of new products, and enhancement of loan processing efficiency.

Finally, I would like to sincerely thank all our customers for their continued trust and choosing SME Bank as a loyal partner in starting and expanding their businesses. In return on behalf of the Board of Directors, management, and staff of SME Bank committed pursuing our efforts to meet the needs of SMEs especially in priority sectors which contributing to socio-economic development.