Cambodia Investment Review
Depositors of Panda Bank began receiving partial compensation this week after the National Bank of Cambodia (NBC) revoked the lender’s license in February and placed it into liquidation, citing deteriorating financial conditions.
Long queues formed at the bank’s Toul Kork branch in Phnom Penh on Thursday, as more than 100 account holders gathered to follow up on claims submitted under the liquidation process. The payouts are being administered by Morrisonkak Audit-Accounting, which was appointed by the NBC as the official liquidator.
The firm confirmed on March 27 that customers who had submitted claims were invited to attend the branch to begin receiving partial repayments, with further disbursements to follow as the bank’s remaining assets are converted into cash.
Liquidation process underway as payouts begin
According to media reports of liquidators on-site, the bank is currently processing approximately 150 customers per day, with withdrawals capped at $20,000 per depositor. Payments are expected to continue in phases, depending on how quickly assets can be liquidated and converted into usable funds.
Officials indicated that a portion of Panda Bank’s assets has already been converted, allowing for the initial round of partial compensation. However, the total recovery for depositors remains uncertain and will depend on the final value realized from asset sales.
Customers are required to verify their eligibility through a claims process, with lists posted at the branch indicating approved applicants. Some depositors have already been contacted and assigned appointment dates, while others arrived without prior notice seeking updates on their claims.
The liquidation team stated that payouts would continue until the bank’s available funds are exhausted, underscoring the limited pool of recoverable assets relative to total deposits.
Customer concerns emerge amid uncertainty
Local media has reported that several customers expressed uncertainty around the timeline and total recovery of their deposits, with some noting they had not yet been contacted despite submitting claims.
One depositor, who spoke to media, said they had been attracted to Panda Bank by its relatively high interest rates and had maintained deposits for over six months prior to the bank’s closure. The individual said they were informed that compensation would be issued only after confirmation on an approved claims list and a scheduled appointment.
The scene at the Toul Kork branch reflected heightened tensions, with military police stationed both inside and outside the premises to manage crowds and maintain order during the payout process.
At the same time, visible signs of the bank’s closure were evident, with the Panda Bank logo removed from the building’s exterior, though interior signage remained intact.
Governance concerns linked to broader investigations
The bank’s liquidation follows earlier scrutiny over its governance and potential links to entities implicated in cross-border financial misconduct.
A report published last year highlighted overlapping senior leadership and directorships between Panda Bank and Huione Pay, a payment firm that has been blacklisted by U.S. authorities over allegations of facilitating large-scale money laundering tied to online scam networks.
In a related development, a director associated with Huione was recently arrested and extradited to China, where authorities have linked the individual to multiple alleged offenses, including fraud and the concealment of criminal proceeds.
While the NBC has not publicly detailed the extent to which these connections influenced its decision to revoke Panda Bank’s license, the case adds to growing regulatory attention on financial institutions operating in high-risk segments of Cambodia’s financial system.
The ongoing liquidation of Panda Bank is expected to serve as a test of Cambodia’s bank resolution mechanisms, particularly in balancing depositor protection with the orderly unwinding of distressed financial institutions.
