Logo of Phnom Penh Post newspaper Phnom Penh Post - CBC reports $6.7B in consumer credit

CBC reports $6.7B in consumer credit

Content image - Phnom Penh Post
An Acleda Bank Plc employee hands money to a customer. Heng Chivoan

CBC reports $6.7B in consumer credit

The total outstanding balance of consumer credit in Cambodia reached $6.7 billion at the end of March – a 7.4 per cent increase from the end of December – the latest report from the Credit Bureau of Cambodia (CBC) said.

The CBC said some 1.14 million Cambodians applied for consumer credit at the end of March, an increase of 5.3 per cent from the end of December.

As of March, non-performing loans after 30 days (NPL 30) reached 1.24 per cent, a slight increase on the 1.18 per cent recorded at the end of December.

“Credit growth is still on the right track. Though the NPL 30 saw a slight increase, it is still at a decent level which implies the good quality of loans and portfolio management from financial institutions,” CBC CEO Oeur Sothearoath said in the report.

He continued that credit card applications saw a drop in the first quarter of this year compared to the previous quarter, which indicates lower demand.

Consumer credit encompasses personal finance loans (51.2 per cent of all outstanding consumer credit loans), mortgages (47.6 per cent) and credit cards (1.1 per cent). Consumer credit outstanding at $6.7 billion accounts for roughly 36 per cent of the total out-standing balance of individual loans in the market.

While the growth in consumer credit was received as a positive sign, industry insiders used the results to warn that the growth of these types of loans should not necessarily be encouraged as most consumer goods in the country are imported. Plus, loans for personal finance and credit cards do not generate economic activity.

MOST VIEWED

  • Tourists urged not to skip trip

    The Ministry of Tourism has called on international tourists not to cancel trips to Cambodia, but urged them to adhere to several dos and don’ts when arriving in the Kingdom during the Covid-19 pandemic. The ministry released an eight-point instruction manual on Wednesday published

  • The taxman cometh – Cambodia’s capital gains tax casts the net on individual taxpayers

    In a country where only limited personal income tax existed, the new taxation law beginning January 1, 2021, will make taxpayers out of Cambodians, whether they are ready for it or not About two years ago, a little known amendment was made to Article 7 of the Law

  • Cambodian-American gets Star Trek treatment

    Kevin Ung, a Cambodian-American whose family escaped genocide during the Khmer Rouge’s reign of terror, was recently selected from thousands of applicants to participate in the Television Academy Foundation’s inaugural 2020 Star Trek Command Training Programme, a course intended to give hands-on filmmaking experience

  • Cambodia seeks to be transport hub

    Cambodia is working on several fronts to modernise its transport infrastructure and services, concentrating on opening new international gates to relieve and balance traffic congestion at its borders, Minister of Public Works and Transport Sun Chanthol said on Thursday. This is part of the Kingdom’

  • PM: West unfair to Cambodia

    Prime Minister Hun Sen released a message celebrating the International Day of Peace on Monday, saying that some major powers and western countries had been systemically cooperating to put political pressure on Cambodia as they did in the 1970s and 1980s. Hun Sen said pressuring

  • First ‘mobile kitchen’ in Cambodia enters service

    A catering company recently rolled out Cambodia’s first “mobile kitchen” – a $50,000 container capable of serving up to 200 people at a time. The kitchen is the brainchild of Seng Hok Heng Catering Services. At 4.4m-high, 6.8m-long and 2.4m-wide (expandable to 6.8m), the kitchen is equipped