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Financial Sector Development


Loans and deposits at Cambodia’s 32 commercial banks and 7 specialized bank grew 33 per cent and 22 per cent respectively in the second quarter of the year comparing to the same period in 2011. Outstanding loans at the end of June 2012 hit US$4.8 billion while deposits accounts for $5.8 billion.

 

The number of licensed MFIs, as of the end of 2011, has reached 32, up from 25 in 2010, 7 of which are licensed to take public customers’ deposit, namely Microfinance Deposit-Taking Institutions (MDI Licensed). Across those institutions, total loan outstanding rose 45 percent to $733 million and 1,197,159 customers, with deposits rising to $176 million and 405,771 depositors in June 2012.

 

In addition, the non-performing loans of the MFI industry kept at 0.24% in June 2012 similar level as in 2011 which was 0.22%. This was attributed to the growth in financial sector due to strong macroeconomic performance, clear regulations and growth in agriculture, industry, construction and trading.

 

The growth of financial sector significantly contributes to the development of small and medium enterprise (SME), real estate for local demand, as well as agriculture which is aligned with the RGC’s long-term strategy in exporting more milled rice to ensure the economic growth as a whole. This move indicates a better understanding of people on microfinance service and credit culture.

 

* Source: National Bank of Cambodia