ABA Bank Denies Viral Claim of Bankruptcy
Last week, a customer's unsuccessful attempt to withdraw money from ABA Bank went viral on social media. This led to a post claiming that the bank was bankrupt and urging customers to withdraw their money. The post was widely shared and elicited many comments, with some users believing it was true. However, we discovered this information is false.
SOCIAL MEDIA CLAIM
A viral piece of information on social media last week claimed that ABA Bank, one of the largest lenders in Cambodia, had gone bankrupt, and this claim has also been extended to customers who make deposits at this bank to withdraw money as soon as possible due to such a situation.
This information was widely shared by Khmer-speaking Facebook users, as well as the mixed reactions and many comments that believed this claim after it was posted on social media.
Below is a snippet from a claim posted on social media by a Facebook user on June 13, 2024, who wrote, “For Cambodians, hurry up and withdraw money from ABA Bank. All because this bank is bankrupt. ”
The same information was shared on social media by other users and received a variety of reactions and comments from Khmer-speaking Facebook users.
The following is an image from a post posted on Facebook on June 13, 2024: “Please, Cambodians, hurry to withdraw all money from ABA Bank because the bank is bankrupt.”
Below is a snippet from the same claim posted on social media by another Facebook user on June 13, 2024.
Another Facebook user posted another piece of information on social media that the giant bank could face bankruptcy after no money was returned to a customer who asked to withdraw money.
This message has been shared more than 100 times and has received many comments from Khmer-speaking social media users.
Below is a picture from the claim on social media on June 14, 2024, which reads: “ABA Bank: Srey Oun put in a lot of money, suddenly the bank has no money to return. May face bankruptcy! ”
A Facebook user posted that ABA Bank is a US-based American banker association founded in 1875 in New York City.
The following is an excerpt from a post on social media on June 13, 2024: "ABA is a full-fledged American Banker Association = ABA Bank, founded in 1875, New York City."
FACT CHECK
Fact Crescendo Cambodia started investigating the above claims by reaching out to ABA Bank and other stakeholders in Cambodia's banking sector. This led to the discovery of the following facts.
To verify this information, Fact Crescendo Cambodia emailed ABA Bank on June 14, 2024. In response, ABA Bank's Public Relations Manager, Khim Sambo Ratana, stated that the claims of ABA Bankruptcy were false and intended to deceive the public. The official urged people not to believe this false information.
Additionally, the ABA official referred to a statement by the National Committee for Information and Public Opinion Coordination (NCIPOC) which labeled the information as false.
The Facebook page "Secretariat of the NPC" was also posted on June 14, 2024, emphasizing that the claim of ABA Bankruptcy was indeed false and urged the public to refrain from spreading this misinformation.
A bankruptcy filing involves many institutions, including notifications to the Cambodian government or the country's central bank and other relevant organizations.
To provide further clarification, Fact Crescendo Cambodia attempted to seek clarification from Ms. Chea Serey, the Governor of the National Bank of Cambodia, but she did not respond to the call.
However, the official Facebook page of the National Bank of Cambodia continues to share the announcement from the Secretariat of NCIPOC, warning people to be cautious of false information.
Fact Crescendo Cambodia has requested confirmation from the Association of Banks in Cambodia (CMA). The association stated that it has not received any notice of ABA Bank’s bankruptcy and considers social media to be a source of "fake news."
Additionally, Kaing Tong Ngy, the Head of CMA Public Relations, confirmed to Fact Crescendo Cambodia that the news of ABA Bank's bankruptcy was "fake". He mentioned that his institution did not receive any official notice from the relevant institutions.
According to the archived information on its website, ABA Bank was established in Cambodia in 1996 as Advanced Bank of Asia Limited. After the acquisition of the National Bank of Canada in 2014, the bank was renamed ABA, abbreviated from its full name.
ABA Bank is one of the largest lenders in Cambodia. In January 2024, the bank's assets were reported to be up to $324 million after its acquisition by the National Bank of Canada.
However, a March report by Bloomberg (archived) suggested that the National Bank of Canada, ABA Bank's parent company, was exploring the sale of the bank for over $2 billion. Reuters later reported that the bank denied this news.
Mr. Khim Sambo Ratana emphasized that the bank remains a leading commercial bank in Cambodia, boasting a strong financial position, solid business performance, and confident shareholders.
He assured that the bank's operations are running smoothly and without interruptions, and it remains committed to providing financial services tailored to the customers' needs.
To support these claims, Sambo Ratana provided a financial statement from ABA Bank, indicating a 5% increase in the bank's 2023 profits, which totaled $276.5 million compared to $262.3 million in 2022.
Additionally, the Khmer Times reported in May that ABA Bank recorded a profit of $79 million in the first quarter of 2024, marking a 15% increase from the $69 million earned in the first quarter of 2023 (archived). (archived)
A 2023 report in the Khmer Times highlighted ABA Bank, ACLEDA Bank, and Canadia Bank as the largest lending institutions in Cambodia, dominating the financial markets with substantial deposits and loan sizes, and being among the most profitable banks.
CONCLUSION
Fact Crescendo Cambodia found that the information described above is false. An ABA Bank official and stakeholders in the Cambodian banking sector have confirmed that ABA Bank’s bankruptcy is "fake news". A representative of ABA Bank stated that the bank maintained its profit growth earlier this year and is committed to providing long-term financial services in Cambodia.
