Rising Financial Sector Eyes Stability

national bank of cambodia report financial sector growth
The Cambodian national flag flies on top of the National Bank of Cambodia’s headquarters on Norodom Boulevard in Phnom Penh.

A first semester report released on Saturday by the National Bank of Cambodia (NBC) has shown outstanding loans across the Kingdom’s financial industry have risen by 20.4 percent to $18.8 billion compared to the same period last year, while deposits grew by 23.4 percent to $17.4 billion, which reflects the sustainable development and increased public confidence in the sector.

However, the non-performing loan rate for banks increased to 2.5 percent and to 2 percent for microfinance institutions, compared to an industry-wide average of 1.46 percent between January and June 2016.

“Cambodia’s banking and financial sector continues to grow strongly and competitively with more financial inclusion,” said NBC governor Chea Chanto, adding that the combined banks assets represented 150 percent of Cambodia’s annual GDP, with loans and deposits equaling 92 percent and 85 percent respectively.

“The [quality of] credit information will be strengthened in order to reduce credit risk and to boost transparency while we are working on a plan to protect depositors to build stronger confidence in the financial sector,” he said.

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