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Cambodia: 42% of loans taken in capital; women outnumber men in provinces
As much as 42 percent of the loans disbursed by banks and commercial banks in Cambodia has been taken by residents living in its capital Phnom Penh while women borrowers outnumber men in most of the provinces.
According to a report by the Credit Bureau Cambodia (CBC) for 2022, released recently, out of the $48 billion disbursed as loans, more than $20 billion was availed by Phnom Penh residents, indicating the scale of businesses activities in the capital, compared to the provinces.
The report, compiled on the basis of data submitted by the CBC’s 185 institution members, including banks, microfinance institutions and other leasing and lending agencies, showed that there are 4.8 million borrowers in the country.
While women constitute the majority of borrowers in most of the Kingdom’s provinces, in Phnom Penh and Ratanakiri, men outnumber them. While in Phnom Penh 51.4 percent of the borrowers are men, it is 50.3 percent for Ratanakiri.
In Banteay Meanchey province, male and female borrowers are equal in numbers. The provinces in which there are more female borrowers include Pursat with 54.8 percent, Takeo, 54.7 percent, Kampong Speu 54.6 percent, Kampong Cham, 54.5 percent, and Kampong Chhnang 54.4 percent. In other provinces, women are marginally ahead constituting 51 percent to 52 percent of the total borrowers.
The CBC noted that most of the individual credit users are women who used the loans for small businesses, farming, or for property maintenance.
While speaking with Khmer Times, yesterday, Vichet Lor, Vice President of Cambodia Chinese Commerce Association (CCCA), noted that women are in search of more financial independence by becoming business owners in the Kingdom.
Also, banks and other financial institutions encourage women to take loans for starting businesses with preferential interest rates. “Currently, women can get better interest rates than men from several banks due to the MoUs signed with the Cambodia Women Entrepreneurs Association,” he pointed out.
“Research and statistics have shown that women are better at managing finance than men at the MSME level. Furthermore, women need more access to finance when they need to expand their current businesses,” Lor added.
Meanwhile, residences in Phnom Penh, Siem Reap, Kandal and Banteay Meanchey borrowed 60 percent of the loans disbursed in the Kingdom, the data showed.
The report said Phnom Penh ranked first with 617,000 loans from banks and microfinance institutions for about $20 billion, equivalent to 42 percent of the national credit balance.
Second place was Kandal province, with 374,000 loans from banks and microfinance institutions accounting for $2.8 billion, which is equivalent to 5.9 percent of the total loans.
Siem Reap came in the third, where 316,000 people borrowed approximately $2.5 billion, accounting for 5.3 percent of the total loans.
Banteay Meanchey was fourth with 218,000 people borrowing a total of $2.4 billion, equivalent to 5.1 percent of the total loans. Provinces with the smallest loan accounts (below $250,000), were Mondulkiri, Pailin and Kep.
According to the CBC, about 76 percent of the customers nationwide borrowed money from just one institution, while about 19 percent borrowed from two and the rest borrowed from three institutions.
Source: https://www.khmertimeskh.com/501266501/42-of-loans-taken-in-capital-women-outnumber-men-in-provinces/