Logo of Phnom Penh Post newspaper Phnom Penh Post - CBC says growth of credit charging ahead

CBC says growth of credit charging ahead

A stack of credit cards. Photo supplied
A stack of credit cards. Photo supplied

CBC says growth of credit charging ahead

Credit Bureau Cambodia (CBC) yesterday released its report for the fourth quarter of 2017, which showed significant growth in applications for credit, particularly in the credit card and mortgage sectors.

The bureau reported a 19 percent increase in applications for credit compared to the third quarter of last year, which surpassed the third quarter growth rate of 10 percent and the second quarter negative growth rate of 15 percent.

Applications for new lines of credit grew fastest in the plateau region, which usually ranks as Cambodia’s poorest region and includes Kratie, Mondulkiri, Ratanakkiri, Stung Treng and Preah Vihear provinces. The growth in that region was primarily driven by mortgage applications, which grew a whopping 271 percent, compared to the 62 percent growth in mortgage applications countrywide.

Growing credit card usage
Growth in the credit card sector was the most robust in the plain region, which includes Phnom Penh and several surrounding provinces. Credit card loans, which still account for less than one percent of total credit issued in the country, grew by 109 percent over last quarter, with most of that growth coming from the capital.

The remaining share of credit in the country is split largely evenly between personal finance loans and mortgages, according to the report.

The nonperforming loan rate (NPL) – the percentage of loans more than 30 days overdue – was 1.5 percent, a drop from the quarter before and slightly lower than the fourth quarter of 2016, despite the total balance of outstanding loans having grown by 44 percent to $4.54 billion in the last year.

According to figures from the National Bank of Cambodia (NBC) released last month, the NPL rate specifically for microfinance institutions was higher, hitting 2 percent last year, almost double the rate from the year before but still within the normal range.

The CBC collects loan data from all banks and microfinance institutions registered with the NBC in Cambodia, according to CBC marketing manager Sam Udam.

MOST VIEWED

  • Time to avert disastrous Covid situation: officials

    The Covid-19 situation in Cambodia is heading towards further large-scale community transmission as the total number of confirmed cases is nearing 61,000 and the death toll passed 900 on July 10, senior health officials warned. Ministry of Health spokeswoman Or Vandine expressed concern that the country was going

  • Two luxury hotels latest quarantine options for inbound travellers

    The Inter-Ministerial Committee to Combat Covid-19 has designated two luxury hotels as alternative quarantine options for travellers who wish to enter Cambodia through Phnom Penh International Airport – Sokha Phnom Penh Hotel & Residence and the Courtyard by Marriott Phnom Penh. In a notice detailing guidelines issued

  • Visa A holders get to quarantine at Himawari Hotel

    The Ministry of Health has permitted foreign diplomats, UN and International NGO officials to undergo quarantine at Himawari Hotel in the capital in case they do not have a separate place suitable for this purpose, but the government would not be responsible for the expenses.

  • Baby saved as mother is lost to Covid

    Newborn baby Neth David has had a rough start in the world. His mother, Vong Daneth, was seven months pregnant when she contracted a severe case of Covid-19. When it became clear to her doctors that she would not survive, they performed a cesarean section

  • Jabs for kids bring hope for school reopenings

    Cambodia is tentatively planning to reopen schools – at least at the secondary level – when the vaccination of children aged 12-17 is completed, even though daily transmissions and deaths in other age groups remain high. Schools across the country have been suspended since March 20, one month

  • Hun Sen: Get 12-17 age group ready for Covid jabs

    Prime Minister Hun Sen has told parents of children aged 12-17 in Phnom Penh and the provinces of Kandal and Preah Sihanouk to get them ready for vaccinations soon. “There is a need to vaccinate children and youths aged 12 to 17. According to the statistics provided