Cambodia's banking system experiences slowest credit growth in 2 decades: central bank

2024-01-30 16:48:00

PHNOM PENH, Jan. 30 (Xinhua) -- Cambodia's banking system recorded a 4.8 percent credit growth in 2023, the slowest-ever growth in the last two decades, said a National Bank of Cambodia (NBC) report released on Tuesday.

The Southeast Asian country's banking system comprises 58 commercial banks, nine specialized banks, and 87 microfinance institutions.

The report said credit growth in the banking system reached 57.6 billion U.S. dollars last year, up only 4.8 percent from a year earlier.

"The single-digit credit growth was the slowest pace in the last two decades due to a slow recovery in some sectors," NBC Governor Chea Serey said in the report.

According to the report, lending to hotels and restaurants rose only 0.6 percent, to wholesales increased 4.8 percent, to home purchases rose 6.4 percent, to real estate rose 16.9 percent and to construction rose 13.9 percent.

Non-performing loan (NPL) at the banking sector and the microfinance sector last year was 5.4 percent and 6.7 percent, respectively, the report said, adding that the NPL rates were still at a controllable level.

"The banking system has played an active role in supporting key economic sectors, although the pace of credit growth has slowed down," the report said.

Customers' deposits in the banking system increased by 13.1 percent to 47.9 billion dollars last year, the report said, adding that the current assets in the banking system rose to 84.3 billion dollars last year, a year-on-year increase of 8.6 percent.

Doc67 wrote: ↑Tue Jan 30, 2024 8:29 am

The report this article cites is the ASEAN Macro Economic Research Office.
https://amro-asia.org/wp-content/upload ... cation.pdf

A back-of-the-envelope calculation indicates that the size of shadow banking linked
to real estate lending is estimated at around 60 to 70 percent of GDP assuming a
moderate level of interconnectedness between them.

YaTingPom wrote: ↑Tue Jan 30, 2024 8:33 am
There's a lot of misinformation and misunderstanding with regard to how China does business. It's not like western governments and businesses.
The vast majority of big corporates are government owned and they control them. It's the same with the citizens; only the small minority of liberals complain about it, everyone else excepts it.

The Chinese have a Leninist-Marxist way of doing business. (Not the other way round)
I don't know about Taiwan but I would imagine it is the same as Japan and the west in the way it conducts business.

The western media have been saying for at least 5 years that China will collapse financially but then they have been saying that there will be a big reset in the western world. Waiting...

With reagard to Cambodia. I am sure I saw an article saying they have $2 billion in Forex or something?

Khmer_Risotto wrote: ↑Wed Jan 31, 2024 2:48 pm

Doc67 wrote: ↑Tue Jan 30, 2024 8:29 am

The report this article cites is the ASEAN Macro Economic Research Office.
https://amro-asia.org/wp-content/upload ... cation.pdf

The shadow banking section (starts on page 36) is an interesting read.

A back-of-the-envelope calculation indicates that the size of shadow banking linked
to real estate lending is estimated at around 60 to 70 percent of GDP assuming a
moderate level of interconnectedness between them.