Thailand
Cambodia: Nation’s financial sector is ‘weathering pandemic’
The Kingdom’s financial sector remains largely resilient and stable despite the latest COVID-19 outbreak, according to Say Sony, senior vice-president and chief marketing management of PRASAC microfinance deposit-taking institution (MDI).
He said he does not know the ultimate impact of the so-called Feb 20 community incident, caused by four Chinese nationals escaping from quarantine at Phnom Penh’s Sokha Hotel and ending up spreading the virus.
He also noted this incident has affected 10 provinces across the country. However, he added his sector was not currently particularly perturbed.
“For sure there will be an impact on clients’ businesses, however we are seeing that the lending and deposit business is still growing – just not at the same rate as normal because some red-zone areas are implementing lockdowns and/or strictly limiting the number of people allowed in and out of specified areas, which will create some late payments,” Sony added. “But, as of today, the non-performance loan (NPL) rates seem fine.”
Cambodia Microfinance Association’s Vice-Chairman Sok Voeun, who is also MDI LOLC Cambodia’s chief executive officer, said: “Despite the significant effects of the pandemic, we still see growth in the financial sector, especially in the microfinance sector. The sector is still growing significantly and exhibiting resilience.”
He added that the customer loan portfolio has increased by about 20 percent year-on-year. Deposits at microfinance deposit-taking institutions have also seen significant growth. Based on this, we have seen positive growth in the sector. At the same time, to help get past this difficult time, Voeun added that Cambodia Microfinance Association’s members and four banks have restructured $1.4 billion in loans for around 290,000 customers.
He added this was a facilitation mechanism between microfinance institutions (MFIs) and customers affected by COVID-19 whose income has dropped. “We discussed solutions to provide a win-win strategy between MFIs and their customers. We believe that this year we will see growth. As of the date we are talking, there has been a slight impact. But I cannot predict what will happen in the future. But, as of now, the impact has been slight,” Voeun stressed.
Mar Amara, senior executive vice-president and group chief financial officer of ACLEDA Bank, said the Feb 20 incident could affect the bank but executives believe the situation is under control.
She added that the bank has strategies to respond to the crisis and strengthen health measures, as well as by expanding financial technology via its mobile app and loan restructures for customers.
Amara added that now customers can also conduct transactions or banking services such as deposit-taking, saving and payment via the ACLEDA Mobile App.
“With this tough situation, the bank has been offering loans and accepting deposits normally. The bank has also issued new loans to customers because access to credit and capital is important for the people and other businesses,” she added.
Amara also said deposit-taking has increased because the bank has expanded its digital services across the country and customers can use the ACLEDA Mobile App for transactions, depositing money, requesting ATM cards and credit assessments via mobile phone, email etc.
“We strictly implement health and safety measures for both staff and customers. If the situation is prolonged, to support the bank’s growth and shield customers from its impact, the bank believes the ACLEDA Mobile App is an effective mechanism and tool to provide financial services as well as our banking self-service centres,” she added.
Source: https://www.khmertimeskh.com/50825391/nations-financial-sector-is-weathering-pandemic/