Cambodia’s banking industry enjoys robust growth in H1 of 2022

Cambodia’s banking industry enjoyed robust growth in both loans and deposits in the first half of 2022, according to the latest report of the National Bank of Cambodia (NBC) on Saturday.

Outstanding loans rose by 23.4 percent year-on-year to $51.5 billion by June this year, while customers’ deposits increased by 16 percent to $42 billion, the report said.

The loans had been provided to key sectors such as trade, housing, construction, agriculture, hotels and restaurants, and manufacturing, among others, it said, adding that Non-Performing Loans (NPLs) at the banks and the microfinance institutions were at controllable rates of 2.6 percent and 2.3 percent, respectively.

The report said the current assets in the Southeast Asian nation’s banking system rose to $75.2 billion by June 2022, an increase of 17.2 percent from June 2021.

NBC governor Chea Chanto said the growth in both loans and deposits clearly reflected public confidence in the country’s banking system.

It also proved that all socioeconomic activities have been fully resumed after most of the country’s 16 million population have been vaccinated against the COVID-19 pandemic, he said.

“The strength of the banking system has played an important role in absorbing part of the impact of the (COVID-19) crisis on the national economy and contributing to the sustainability of business activities, investment and consumption,” Chanto said.

Cambodia currently has 58 commercial banks, nine specialized banks, and 86 microfinance institutions, with a total of 2,614 headquarters and branches as well as 3,998 automated teller machines (ATMs) throughout the country, the NBC said.

Currently, there are 13.2 million deposit accounts and 3.5 million credit accounts at the country’s banks and microfinance institutions, the NBC added. Xinhua