![Opinion: David and Goliath [Three Lessons for Cambodia’s Banks]](https://cambodiainvestmentreview.com/wp-content/uploads/2026/07/1757921716531-Airside.jpg)
By Raymond Sia
Among the many stories of wisdom and personal reflection in the Bible, the tale of David and Goliath continues to resonate with me. A young shepherd boy; the youngest in his family, unassuming in nature and slight in stature; who would one day become king after defeating a fearsome Philistine giant with nothing more than a pebble and a sling. (1 Samuel 16-17).
It is a story I return to often, and one that feels relevant to the banking landscape here in Cambodia today.
Cambodia’s banking sector is highly fragmented, comprising over 130 commercial banks and microfinance institutions that vary widely in balance sheet size and branch reach. While this diversity encourages healthy competition during periods of economic growth, it could also increase systemic risk; exposing weaker institutions to runs & failures when economic conditions deteriorate. A fragmented banking system will often amplify the effects of a downturn rather than absorbing it.
Read more: Opinion: Crisis or (Mere) Challenge? The State of Cambodia’s Banking Industry
- Small Does Not Mean Weak
David was the youngest in his family and had six older brother and was considered “small” in stature relative to his other older brothers and certainly when compared with Goliath. (1 Samuel 16)
Having spent considerable time observing Cambodia’s financial sector, we need to be mindful that size should not always be equated to strength. Bankers and analysts are often fixated on the balance sheet (assets, loans & deposits) as the definitive measure of an institution’s worth. But this tells only part of the story.
Cambodia’s banking sector has grown remarkably in recent decades with double digit loans and deposits growth due to the support of a pragmatic Regulator & Government. In recent years, this growth has stifled for reasons which I had penned in my previous Right Angle article on 1 June 2026 – “Crisis or (Mere) Challenge? The State of Cambodia’s Banking Industry”.
Within Cambodia’s banking ecosystem, there are institutions of different balance sheet size and vintage. We need to be mindful that smaller banks are not necessarily weaker ones. Small can be beautiful, provided certain key financial indicators are complied with such as (more than) adequate liquidity and a strong enough capital buffer to absorb shocks.
All financial institutions operating under the National Bank of Cambodia’s oversight are required to meet minimum capital requirements. But liquidity is an area where the regulatory framework is less prescriptive, and it is here where institutions, large and small alike, must exercise greater discipline and self-awareness.
David was certainly nowhere near the size of Goliath but he was still victorious in that battle. Besides faith in God and divine favour, David was prepared and had a plan and strategy. He acted decisively, running towards Goliath rather than waiting passively. David also leveraged his experience with a sling, a tool he mastered as a shepherd.
“Small (and being well prepared) can be beautiful”
- 2. Bigger Is Not Always Stronger
Goliath was big. Actually, he was beyond big and was a giant. According to the historical text in the Bible,Goliath stoodatapproximately9 feet 9 inches (2.97 meters)and was the tallest person recorded in the Bible. (1 Samuel 17:4)
A large sized financial institution can at times provide an illusion of invincibility. Please do not read this the wrong way – we have a number of large banks in Cambodia today and these institutions are “giants” in their in their own rights and are financially strong; backed by (even) stronger (and bigger) shareholders.
Financial institutions with a large balance sheet in the appropriate areas and in the right proportion always provide customers and the public confidence in the institution. A large-sized balance sheet but with an equally large disproportion in assets and liabilities could be a red-flag which requires more caution and closer monitoring.
In Cambodia’s fast-growing credit market, the race to scale has at times outpaced the care & need for sound risk management. An institution that has grown quickly without the foundations of strong governance and prudent lending is not a giant; it is an exposed target.
Compliance & governance are equally important factors for all financial institutions to be watchful & vigilant about. It is unfortunate that Cambodia has seen a record number of financial institutions being sanctioned by US Treasury Department / Office of Foreign Assets Control the past year; and more efforts and focus are needed from all relevant stakeholders to avoid such recurrence which only damages the reputation of the banking industry and country.
“Size is not everything”
- 3. The Pebble That Changes Everything
What felled Goliath was not an army. It was one well-aimed pebble. (1 Samuel 17:49)
In banking, that pebble can take many forms; a sudden liquidity squeeze, an undisclosed concentration of risk or a single reputational misstep that triggers a loss of depositor confidence. Or just sheer ignorance – “we don’t know what we don’t know” or a lackadaisical attitude towards learning and accepting the fact we do not know everything.
In a market like Cambodia, where financial literacy is still maturing and trust in financial institutions is hard-won, reputation is everything.
Once that trust is broken; whether through mismanagement or the perception of instability, recovery is a long & hard process and there are instances where there could be no recovery at all.
No balance sheet – however large, no management team (irrespective local or expatriate profiles) – however capable; can fully compensate for the erosion of public confidence.
“The weakness link is always what breaks the chain”
Cambodia’s banking sector has come a long way. It has a future and this very much depends on the actions we take today.
As the banking industry continues to grow, the lesson of David and Goliath is a good reminder to all that true strength is never simply a matter of size and a mere “pebble” (such as a liquidity squeeze or mismanagement) can cause destruction if we are too arrogant or ignorant of our position or situation.
Raymond Sia currently serves as Managing Director of Canadia Investment Holding Plc and Board Director for Canadia Bank and Credit Bureau Cambodia. Raymond Sia believes there are many good life lessons and principles from the Bible. He is a firm believer in market discipline and financial accountability; and no financial institution regardless of size or linkage should be shielded from the consequences of its own risk-taking. Raymond is also the author of the “Right Angle – The Collection Volume One” which is available for sale. The views expressed above are strictly the author’s personal opinion and do not represent the organisations & institutions he is attached with or represents.
