Subscribe Search

Search form

Logo of Phnom Penh Post newspaper Phnom Penh Post - Bank of Thailand asks others to weigh risks

Bank of Thailand asks others to weigh risks

Bank of Thailand asks others to weigh risks

BANKS were asked to consider the risks involved in carrying agricultural sector loans by a Bank of Thailand representative during the second day of a macroeconomic policy seminar held in Phnom Penh Wednesday.

Rongporn Roengitya, senior examiner in the Bank of Thailand’s risk management examination department, said the risk of lending to agricultural enterprises was “much higher” than the manufacturing sector, which meant that banks might need to “hold” more capital to adequately service the risks.

“You can lend [to agriculture], but know your risks well,” she warned, highlighting the number of unpredictable factors involved in sector returns – such as weather and insect population.

Her comments during a broader presentation on Thailand’s macroeconomic experiences stemmed from discussions during the UN-led conference, where agriculture was highlighted as playing a key part in the future of Cambodia’s economy.

ACLEDA Bank’s CEO In Channy responded to the remarks.

He said that the bank had already taken on hefty loans to the agriculture sector and was well aware of the risks involved.

A total of 15 percent of ACLEDA’s loan book is focused on agriculture, he said, in large part because of its rural presence in Cambodia – a much higher percentage than the 3 to 5 percent most other banks carry.

He told the Post at the sidelines of the conference that the bank had capped its exposure at 15 percent and would not look to take on more, as it needed to diversify its risk.

The meeting also proved a chance for officials to address monetary concerns.

Neav Chanthana, National Bank of Cambodia’s deputy governor, took advantage of her closing remarks as chairperson for the morning session to call on the private sector to do more to strengthen the riel.

“I take this opportunity to encourage all the institutions to support the use of the local currency,” she said.

“We have a long term objective of ensuring our local currency be used as a means of payments and medium of savings,” she added.

“The government has worked so hard that we all receive and pay everything in the local currency. I think the private sector [needs to] take part in using the local currency more.”


  • Kak Channthy, Cambodian Space Project frontwoman, killed in crash at 38 [Updated]

    Updated 5:05pm, Tuesday, March 20, 2018 Kak Channthy, frontwoman of popular The Cambodian Space Project, was killed Tuesday morning in a traffic accident in Phnom Penh. She was 38. Channthy, the internationally recognised singer-songwriter also known as “Srey Thy”, was reportedly travelling in a tuk-tuk on the city's

  • Australians protest Asean summit visit by PM Hun Sen

    Hundreds of protesters gathered in Sydney’s Hyde Park on Friday to protest against Cambodian strongman Hun Sen, who claimed to have been gifted millions of dollars by the Australian government ahead of a special Asean summit this weekend. An estimated 300 protesters, the majority of

  • One Australian, one Cambodian killed in explosion at military base

    Updated: 5:20pm, Friday 16 March 2018 An Australian tourist and a Cambodian soldier were killed in an explosion on Thursday afternoon at an army base in Cambodia’s Kampong Speu province. The Australian, whom the government initially identified as a technical demining expert in his 40s, and

  • Peeling back layers of prehistory in Battambang

    When the man passed away, he had not yet reached 50. He belonged to a tribe that had settled near the Sangker River in Battambang province, likely cultivating the fields and raising animals. On the side, they hunted for boars, and even turtles, one of which