Thailand
Cambodia: Consumer credit applications down 4% in fourth quarter
The number of consumer credit applications for loans in the form of personal finance, credit card, or mortgages decreased by 4 percent in the fourth quarter of 2022 compared with the last quarter, according to the Consumer Credit Index of the Credit Bureau Cambodia (CBC).
While applications for personal finance declined 6 percent, credit card applications came down 3 percent, but mortgage applications increased 15 percent in the fourth quarter.
The consumer credit quality, which indicates creditworthiness or risk of default of a portfolio and is calculated by taking the ratio of late repayment 30 days past their due date, increased by 2.51 percent indicating a marginal drop in credit quality.
With an increase of 3.45 percent, the number of loan accounts reached around 1. 54 million, according to the CBC report.
At 3.82 percent change, consumer loan balance quarter-on-quarter reached $14.32 billion by the end of the fourth quarter.
The majority of credit customers stayed committed to a single financial institution and held only a single account.
Oeur Sothearoath, CBC Chief Executive Officer, said “the sector continued to recover after the two-year Covid-19 crisis.”
Mar Amara, Senior EVP and Group Chief Finance Officer of Acleda Bank, told Khmer Times, “The total credit continued to increase for the private sector in 2022. Credit for the private sector remains a good way to expand or infuse capital into the business. Also, business owners still have enough access to credit/supplementary credit.
“For Acleda Bank, loans increased by more than 8 percent in the second quarter compared to the first quarter. The bank provides loans to meet customer needs and contribute to sustainable economic development.”
Source: https://www.khmertimeskh.com/501231717/consumer-credit-applications-down-4-in-fourth-quarter/