Logo of Phnom Penh Post newspaper Phnom Penh Post - Loans and deposits up 30%

Loans and deposits up 30%

Loans and deposits up 30%

9 Loan and deposits

Outstanding loans and deposits made at Cambodian banks grew by 32 per cent and 28 per cent respectively at the end of March this year from a year earlier, according to data from the National Bank of Cambodia (NBC).

The data from the NBC that the Post obtained yesterday revealed that outstanding loans provided by all Cambodian banks reached about $6.14 billion at the end of March this year, and deposits made at all commercial banks reached about $6.39 billion.

Speaking to the Post yesterday, Nguon Sokha, director general of the NBC, said the banking sector is the oil to support the economic growth, so the current growth rates on loan disbursement is a reflection of the growth of Cambodia’s economy.

“There is still a large demand for financing to boost investment activities in Cambodia,” she said. “As our country still maintains a GDP growth rate at seven to eight per cent annually, loan disbursements and deposit amounts are still growing as we see at this time.”

While all sectors are important to increase financing in the banking industry, Sokha said loans for agricultural activities contributed much to the growth, which is up about 40 per cent from the year
earlier.

Major financial institutions currently show more trust in providing loans to the agricultural sector, thanks to Cambodian government policies to boost the agricultural sector.

Acleda Bank, Cambodia’s largest domestically owned bank, has been increasing its percentage share of its loan portfolio into agriculture from 15 per cent two years ago to 19 per cent at the end of March.

While the bank’s total loan portfolio reached about $1.35 billion at the end of March this year, In Channy, the bank’s president and chief executive, said $254 million was given to agricultural loans, which represents about 19 per cent of total lending.

“It [agricultural loans] is growing quite well,” said In Channy. “We are more confident to provide loans in the agricultural sector because the government policy has encouraged us to do so.”

He added that another $16 million went to rice millers, but are considered separate from agricultural loans at Acleda.

Acleda is not alone, but the increase of loans to the agricultural sector has also happened with ANZ Royal bank, a major commercial bank in the Kingdom.

Grant Knuckey, chief executive officer of ANZ Royal, said he has seen consistent growth in loans to the agricultural sector, particularly in the past 12 months, with a growth rate of around 35 per cent.

“Agriculture is a very promising sector for banking from a growth perspective, but issues hampering the provision of increased finance also need to be acknowledged,” he said, “These include poor financial information and inadequate documentation.”

MOST VIEWED

  • Temi tourism project approved by the CDC

    The $500.4 million Tourism, Ecological, Marine and International (Temi) tourism project has been approved by the Council for the Development of Cambodia (CDC), according to a notice on its Facebook page on Monday. The project is part of Chinese-owned Union City Development Group Co Ltd’s (

  • Rainsy will return at ‘favourable time’

    Opposition figure Sam Rainsy on Saturday suggested he would not return to Cambodia as he had previously promised, saying that like liberators King Father Norodom Sihanouk and Charles de Gaulle, he would only do so at a “favourable time”. “I will go back to Cambodia

  • US Embassy urged to stop ‘disrespecting sovereignty’

    The Ministry of Foreign Affairs and International Cooperation called on the US Embassy in Phnom Penh on Saturday to respect the Vienna Convention on Diplomatic Relations after it called former opposition leader Kem Sokha “an innocent man” – a move deemed to be “disrespecting Cambodia’s

  • NagaWorld casino sees net profit of more than $390M last year

    Phnom Penh’s NagaWorld casino posted a 53 per cent net profit increase last year at $390.6 million, a sum which is almost equal to the combined net profit of all Cambodian commercial banks in 2017. NagaWorld’s parent company, NagaCorp Ltd, is listed on the Hong Kong