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Consumer credit applications fall 34% in the second quarter: CBC

Consumer credit applications have fallen by 34% in the second quarter of this year as loans 30 days past their due date hit 2.57% an increase of 18% quarter-on-quarter, according to the Credit Bureau Cambodia (CBC) Q2 Consumer Credit Index Report.

Consumer loan balance continued to rise, increasing at +3.42% as of June 2021. By the end of the quarter, there was a total of $10.75 billion outstanding consumer loan balance.

Oeur Sothearoath, Chief Executive Officer of CBC said: “Similar to previous years, credit market in the second quarter normally slowed down. However, the drop in quarter-on-quarter growth of both number and amount of credit application is smaller compared to the same quarter in 2020 when we witnessed major impact from the onset of the global pandemic.”

“The 30+ DPD ratio continue to rise to 2.57% indicating a drop in credit quality comparing quarter-on-quarter,” he added.

The number of customers who held credit accounts with only one financial institution remained high at 73.66% of all customers. The remaining​ share of 26.34% represented those having relationships with multiple financial institutions.

The share of the number of customers holding only one loan account stood at 61.09%; those holding two accounts made up 27.25%; those holding three accounts made up 8.69%; and those with more than 3 accounts were only 2.97% of the entire credit customer base.

The most significant decrease was reported in personal finance applications dropping -34% from the previous quarter, followed by a -32% decrease in mortgage applications. Meanwhile, there was a -25% decline in credit card applications compared to the previous quarter.

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