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

  • Phnom Penh curfew starts today

    A two-week curfew from 8pm to 5am starts today in Phnom Penh, a day after a sub-decree detailing administrative measures to contain Covid-19 was issued by Prime Minister Hun Sen. “Travelling in Phnom Penh is temporally banned between 8pm and 5am,” said Phnom Penh governor

  • Cambodia on the verge of national tragedy, WHO warns

    The World Health Organisation (WHO) in Cambodia warned that the country had reached another critical point amid a sudden, huge surge in community transmission cases and deaths. “We stand on the brink of a national tragedy because of Covid-19. Despite our best efforts, we are

  • Cambodia gears up for muted New Year festival

    The recent curfew and restrictions imposed in the capital and other Covid-19 hotspots were intended to break the chain of transmission, Ministry of Health spokeswoman Or Vandine said as municipal and provincial authorities issued new directives banning certain activities during the upcoming Khmer New Year

  • Vaccination open to foreigners in Cambodia

    The Ministry of Health on April 8 issued an announcement on Covid-19 vaccination for foreigners residing and working in Cambodia, directing the Ministry of Labour and Vocational Training and local authorities to register them. Health minister Mam Bun Heng, who is also head of the inter-ministerial

  • Covid-19 vaccination now obligatory

    Prime Minister Hun Sen on April 11 issued a sub-decree making Covid-19 vaccination compulsory for individuals unless they have a medical certificate proving they have pre-existing health conditions that prevent them from doing so. «This applies to all members of the armed forces and civil servants

  • Culture ministry: Take Tuol Sleng photos down, or else

    The Ministry of Culture and Fine Arts has told Irish photographer Matt Loughrey to take down the photos of Khmer Rouge victims at Tuol Sleng Genocidal Museum which he allegedly colourised and altered to show them smiling. The ministry said Loughrey's work is unacceptable, affecting