Logo of Phnom Penh Post newspaper Phnom Penh Post - Seasonal upswing in Q3 lending reported

Seasonal upswing in Q3 lending reported

Seasonal upswing in Q3 lending reported

New data released by Cambodia’s independent credit reporting agency for the third quarter show an overall increase in loan applications after a large contraction during the previous quarter, signalling what analysts described as renewed seasonal lending by financial institutions.

The Credit Bureau Cambodia (CBC) said in its quarterly publication released yesterday that overall credit applications – which include personal finance, credit cards and mortgages – increased overall by 24 percent, compared to the previous quarter. The growth was primarily carried by an increase of mortgage applications, which grew by 75 percent, followed by credit card applications at 33 percent, and personal finance at 22 percent.

Oeur Sothearoath, head of business development at the CBC, said that the seasonal growth and contractions in lending was largely a cyclical phenomenon. “If we observe yearly trends, it is quite common to have increasing phases in the first and third quarter, and decreasing phases in the second and fourth quarter,” he said.

“One of the reasons could be the number of holidays in the second and last quarters that tend to slow down the whole economy.”He noted that while the second-quarter report showed a 25 percent overall decline in loan applications, “from a global perspective, credit in Cambodia is still growing”.

The report added that the number of credit accounts grew by nearly 5.5 percent in the third quarter, almost twice as fast as during the previous quarter, resulting in an outstanding balance of $3.06 billion.

Meanwhile, the non-performing loan (NPL) rate showed a barely measurable uptick, from 1.46 percent last quarter to 1.48 percent. “For the moment, what we can say is that Cambodia’s NPL level remains low and manageable,” Sothearoath said.

“In comparison to other developing countries, where the NPL rates are more around two or 3 percent, there is nothing alarming for the moment.”

CBC’s data, which is collected from lending institutions registered with the central bank, aim to monitor closely the evolution of credit in the Kingdom.

MOST VIEWED

  • 12th Cambodia int’l film festival to see return of Hollywood star

    Phnom Penh is set to come alive with the magic of cinema as the highly anticipated 12th Cambodia International Film Festival (CIFF) takes centre stage. Boasting an impressive line-up of 188 films from 23 countries, including captivating shorts, feature films, documentaries and animation, the festival promises an

  • Bareknuckle champion wants Kun Khmer fighter

    Dave Leduc, who is the current openweight Lethwei boxing champion in Myanmar, has announced that he will travel to Cambodia this year to challenge SEA Games gold medallist Prum Samnang any time that is convenient, after their planned match later this month in Slovakia was

  • Brawl marrs football final as Indonesian take gold in seven goal thriller

    The Indonesian men's U22 men national football team were crowned champions of the 32nd SEA Games in Cambodia, defeating Thailand 5-2 in extra time on May 16 at Olympic National Stadium in Phnom Penh. The match was marred by an ugly incident that occured in the 91

  • 1.4 billion dollar Phnom Penh-Bavet expressway due in four years

    The Government, through the Ministry of Public Works and Transport, has officially signed a public-private partnership agreement with a private company for the construction of a Phnom Penh-Bavet Expressway project that will connect the capital to Svay Rieng province. The budget for the project is

  • Fresh Covid warnings as Thai hospital fills

    A senior health official reminds the public to remain vigilant, as neighbouring countries experience an increase in Covid-19 cases, with the latest surge appearing to be a result of the Omicron XBB.1.5 sub-variant. Or Vandine, secretary of state and spokeswoman for the Ministry of Health,

  • New Law on Taxation comes into effect

    Cambodia has enacted the eagerly-awaited new Law on Taxation, which aims to improve the national tax regime’s compliance with present and future international standards and economic conditions; encourage accountability, effectiveness and transparency in the collection process; and promote investment in the Kingdom. King Norodom