Banks covering their assets
Cambodian financial institutions surveyed yesterday said they were in compliance with the central bank’s revised liquidity coverage ratio requirements as the deadline passed to increase their cash and highly liquid assets to weather any internal or external shocks. The National Bank of Cambodia announced an incremental increase in the LCR in a prakas issued last December, giving banks and microfinance institutions until September 1 to raise their LCR to 60 per cent of their projected 30-day net cash outflows. The increase is a step toward the goal of 100 per cent LCR by 2020, and has been heralded as a positive step to strengthening the Kingdom’s financial industry and cooling rapid credit growth. Charles Vann, executive vice president of Canadia Bank, said that while he could not disclose the bank’s LCR, it met the 60 per cent requirement. “The National Bank of Cambodia has all of the liquidity reporting and will reveal to the industry who has followed the prakas,” he said.
