Banking shows steady growth
Cambodia’s financial sector saw healthy growth last year with increased deposits and profits amid slower credit growth, reflecting sustainable development and increased public confidence in the sector, according to a recently released central bank report. According to the National Bank of Cambodia’s (NBC) annual supervisory report, deposits in the country’s banks rose by 21.8 percent to $13.9 billion last year, while loans increased by 20.5 percent to $14 billion, down from 25.8 percent in 2015. Deposits at Cambodia’s seven deposit-taking microfinance institutions (MDIs) increased by 12.7 percent to $1.48 billion, while the combined loan portfolio of all microfinance institutions (MFIs) increased by 4.7 percent to $3.16 billion at the end of 2016. Stephen Higgins, managing partner at Mekong Strategic Partners, said that last year’s deposit growth of 20 percent was at a healthy rate and a positive indicator for continued financial stability.
