Credit Growth Slowing Down

0
2299

160905 b2b - news - Credit Growth Slowing Down

New data released by the Credit Bureau of Cambodia (CBC) indicate a significant slowdown in the rate of lending during the second quarter of 2016, which may be the result of tightening lending criteria and less demand from the struggling agricultural sector.

The CBC, in its quarterly publication, says that overall credit applications—which include personal finance, credit cards and mortgage—have decreased by 25 percent during the second quarter of the year. Since the first quarter, personal finance and mortgage applications have decreased by 26 percent and 10 percent, respectively.

“The fall is mostly due to a decrease in personal finance applications in all regions of Cambodia,” the report stated. “Mortgage applications have also experienced a slight drop in the number of applications, but the value seems to remain stable [compared to the first quarter].”

Nay Sambo, Senior Specialist For Credit Information at ACLEDA Bank, suggested that the Kingdom’s banks have adopted a more cautious approach to lending after noticing a deterioration in the quality of credit. He also implied that banks are taking into account the ailing agricultural sector, which is now beginning to recover from the severe drought that beset the country earlier this year.

“The economy is not so good right now for lending,” he said. “And we are seeing that some banks do not have good lending portfolios and are reviewing their credit policies and becoming stricter with lending.”

For more on this story, please click here.

LEAVE A REPLY

Please enter your comment!
Please enter your name here