AKP Phnom Penh, March 21, 2025 --

The Cambodian Banking Association (ABC) and the Cambodian Microfinance Association (CMA) have emphasised the stability of the loan portfolio, providing a clarification on the current state of the banking industry in Cambodia.

The move was made after recent discussions surrounding the Credit Bureau Cambodia (CBC)’s report, which detailed a loan portfolio of nearly US$60 billion across banking and financial institutions.

Mr. Sok Chan, spokesperson for the ABC, confirmed on Mar. 21 the reported loan figure of approximately US$60 billion as of the end of 2024, representing loans and credits from institutions licensed by the National Bank of Cambodia (NBC).

He further clarified that loan growth had slowed significantly, increasing by only 3 percent compared to the 5 percent growth observed in 2023, citing that this portfolio was distributed across more than 4 million accounts, serving approximately 5 million customers.

Mr. Sok Chan attributed the decelerated growth to both supply and demand factors.

“On the demand side, the sluggish recovery of key sectors, including construction, real estate, tourism, and wholesale/retail, has dampened borrowing activity. On the supply side, financial institutions have adopted a more cautious approach to lending amidst regional and global economic uncertainties,” ABC’s spokesperson said.

Despite the slowed credit growth, Mr. Sok Chan highlighted the robust growth of customer deposits, which surged by 16.3 percent to reach US$57 billion by the end of 2024.

He underlined the strong capital position and high liquidity of the banking system, indicating its resilience and stability.

“Loan disbursement across various sectors is a positive sign, as long as the use of credit is productive and the quality of credit remains manageable,” he said.

In recent years, credit has been disbursed directly to productive sectors such as manufacturing, SMEs, agriculture, transportation, and personal mortgages.

The non-performing loan (NPL) rate, while experiencing a slight increase to approximately 6 percent remains within manageable limits, he added.

According to CBC’s report, credits in Phnom Penh, Kandal, and Siem Reap were high due to these areas being clusters of economic activity and having large populations.

The Cambodian Microfinance Association (CMA) echoed these sentiments, highlighting the sector's resilience and commitment to responsible lending practices.

Debt or credit is not all bad, and credit in Cambodia is extended to customers in various sectors (diversification), such as retail trade, home ownership, real estate trading, personal lending, construction, agriculture, forestry and fishing, wholesale trade, manufacturing, hotels and restaurants, and others, CMA’s Head of Communication spokesperson Mr. Kaing Tongngy said.

NBC Governor H.E. Dr. Chea Serey said in February that lending at the banking and financial institutions grew at a slower pace last year due to the slow recovery of sectors such as construction and real estate, tourism, and wholesale and retail.

On the deposit side, she pointed out, the banking and financial institutions recorded fast growth of 16.3 percent last year, reflecting that the banking system is resilient with strong confidence from the public.

Cambodia has 59 commercial banks, nine specialised banks, 85 microfinance institutions, and 114 rural credit institutions, with 23.3 million deposit accounts and 4 million credit accounts, stated the report.

By Chea Vannak