Cambodia Investment Review
The Association of Banks in Cambodia (ABC) observed its 30th anniversary highlighting three decades of consistent growth and strategic transformations in Cambodia’s banking sector. Under the oversight of the National Bank of Cambodia (NBC), the sector has seen substantial increases in assets, credit, and deposits, signifying enhanced stability and economic integration.
In a recent milestone, the total assets within Cambodia’s banking sector reached US$77.4 billion in 2023, up from US$67.9 billion in 2022. This growth in assets represents 243% of the national GDP for 2023, an increase from 230% the previous year. Additionally, the sector saw an increase in the volume of credit, which accounted for 163% of GDP in 2023, compared to 155% in 2022. Deposits also showed a notable rise, amounting to approximately 144% of GDP in 2023, up from 130% in the preceding year.
Undergone Significant Transformation Over The Past 30 Years
Mr. Rath Sophoan, Chairman of the ABC, detailed the sector’s evolution. “The banking sector in Cambodia has undergone significant transformation over the past 30 years, evolving into a more robust and resilient framework,” he stated. Mr. Sophoan underscored the ABC’s dedication to fostering strong governance, financial inclusion, professional development, and collaborative efforts within the banking ecosystem.
Her Excellency Dr. Chea Serey, Governor of the National Bank of Cambodia, commended the ABC for its pivotal role in this development. “The banking system has demonstrated remarkable development and resilience, contributing to robust economic activities,” Dr. Serey explained. She attributed the growth in assets, credits, and deposits to increasing public and investor confidence, which underscores the sector’s stability and the country’s economic recovery.
Financial inclusion has been a significant outcome of these developments. According to a Mobile Tracker Survey by UNCDF, formal financial service usage has increased from 59% in 2015 to 67% in 2021, approaching the national target of 70% by 2025. The NBC has prioritized financial literacy and consumer protection to ensure the ongoing robustness and resilience of the banking system. Initiatives have included enhancing both financial and digital financial literacy in cooperation with various ministries and development partners, as well as strengthening consumer rights through legislative measures and complaint resolution mechanisms.
Promoting The Development Of Cambodia’s Financial System
The ABC’s membership in the ASEAN Banks Association (ABA) and other international forums highlights its role in promoting Cambodia’s banking sector on a regional and global scale. The country’s banking infrastructure includes 36 commercial banks, 11 specialized banks, 7 deposit-taking microfinance institutions, 32 MFIs, and 38 rural credit operations, collectively managing more than US$11.4 billion in loans and over US$10 billion in deposits. This network supports 2.2 million loan customers and 3.3 million depositors.
As a professional, non-profit organization, the ABC continues to collaborate closely with regulators, government agencies, and international stakeholders to promote the development of Cambodia’s financial system and protect the interests of its members.
