Logo of Phnom Penh Post newspaper Phnom Penh Post - NBC: Banking sector robust

NBC: Banking sector robust

Content image - Phnom Penh Post
National Bank of Cambodia (NBC) governor Chea Chanto says Cambodia has maintained an impressive economic growth of 7.1 per cent despite geopolitical tensions that hindered global economic growth. NBC

NBC: Banking sector robust

The local financial industry continued its rapid growth despite multiple regional and international challenges, the National Bank of Cambodia (NBC) said on Thursday.

Speaking at the opening of an annual general meeting, NBC governor Chea Chanto highlighted some of the challenges of 2019, a year, he said, was marked by geopolitical tensions in Europe, Latin America, Asia and the Middle East that hindered global economic growth.

He highlighted tensions between the world’s biggest economies – the US and China – and the uncertainty caused by the UK as it scrambled to conclude its departure from the EU.

Chanto said these issues affected international trade and investment across the world last year but noted that Cambodia weathered the storm and maintained an impressive economic growth of 7.1 per cent.

He said Cambodia was the fastest growing economy in Asean last year.

“The banking sector in Cambodia is healthy and contributing to financial inclusion, the improvement of livelihoods and the reduction of poverty,” he said.

The government and banking authorities, he said, are prioritising the adoption of the latest technology in the financial industry.

Exemplifying the growth seen by the local banking sector last year, Acleda Bank Plc president and group managing director In Channy discussed the bank’s achievements last year.

Channy reported that Acleda’s loan and deposit portfolios rose by seven per cent and 12 per cent respectively, helping the bank achieve a 40 per cent revenue growth. Acleda’s non-performing loan ratio, he noted, stood at just 1.2 per cent.

“These achievements give us a strong foundation for growth in 2020 and will help us overcome any challenge,” he said.

The NBC said the asset-to-GDP ratio in the banking sector grew from 20 per cent in 2002 to 189 per cent last year, with assets valued at 207 trillion riel ($51.07 billion).

The credit-to-GDP ratio stood at six per cent in 2002, skyrocketing to 119 per cent by last year, while the GDP-to-deposit ratio went from 12 per cent to 113 per cent during the same period.

As of last year, credit in the industry totalled 117 trillion riel ($28.91 billion), while deposits were valued at 124 trillion riel ($30.62 billion), said the NBC.

Cambodia’s financial health last year, the NBC said, was also bolstered by strong domestic demand and growing exports.

In the first three quarters of last year, Cambodian exports to international markets totalled $10.9 billion. The Kingdom imported $16.5 billion worth of goods.

The NBC said as of the end of last year, Cambodia’s foreign reserves had reached about $18 billion, guaranteeing seven months of goods and services imports.

MOST VIEWED

  • Siem Reap drain canal now ‘mangrove’ promenade

    A more than half a kilometre long stretch of canal in Siem Reap has been covered and turned into a promenade to attract visitors, said Ly Rasmey, secretary of state at the Ministry of Land Management, Urban Planning and Construction, on September 16. The new pedestrianised

  • Angkor wildlife, aquarium park still to open October

    The Angkor Wildlife and Aquarium complex about 30km southeast of Siem Reap town with initial total investment of more than $70 million is reportedly still on track for an end-October opening. The park is located on a 100ha plot along National Road 6 in Kbon village, Khchas

  • Final verdicts for Khmer Rouge leaders ‘vital’ for next generation

    Nearly a decade after the commencement of Case 002/02 against Khieu Samphan back in 2014, the Extraordinary Chambers in the Courts of Cambodia (ECCC) is now set to deliver its final verdict for the former Khmer Rouge head of state. The Supreme Court Chamber of the ECCC,

  • Typhoon Noru brings flash floods – 16 dead

    An official warned that that the 16th typhoon of the season, Noru, had brought heavy rains to areas the Mekong River and flooded thousands of homes in the provinces bordering Thailand. As of September 27, the death toll from the flooding had risen to 16. National Committee

  • Defence minister reaffirms Kingdom’s staunch support for One-China policy

    Minister of National Defence General Tea Banh has reaffirmed Cambodia’s unwavering support for the One-China policy. Tea Banh was speaking at the September 20 ceremonial handover of 117 vehicles and other military equipment donated by China’s defence ministry, held at Phnom Chumreay International Military Training

  • Deaths due to ‘lifestyle’ diseases rise in Kingdom

    The Ministry of Health has called on people to pay closer attention to their health to protect themselves from non-communicable diseases (NCDs) which it said have caused high rates of deaths in the country. Ministry secretary of state York Sambath made the call at a