Impacts of Banking Sector
90 percent of Cambodia’s financial assets are located in the country’s banking system. Last year (2018) the Bank´s assets increased by 20.12 percent to approximately USD28.89 billion, equivalent to 131.43 percent of GDP. Credit was concentrated in key economic sectors such as wholesales and retails (30 percent), agriculture (10.40 percent), construction (9.50 percent), residential real estate loan (9.30 percent), and other sector (40.80 percent). At the same time, banks’ deposit grew at a rate of 25.11 percent, an increase of 3.29 percentage point from 2016, making total deposit amount stood at USD17.42 billion.
Non-performing loans ratio remained at 2.40 percent in 2017 compared to 2016. The banking industry’s Return on Asset (ROA) and Return on Equity (ROE) were 1.54 percent and 8.40 percent, respectively.
Cambodia’s banking sector is expanding rapidly. By the end of 2017, the sector has 39 commercial banks, 15 specialized banks, 69 microfinance institutions, seven microfinance deposit-taking institutions, 313 rural credit institutions, six representative offices, 11 financial lease companies, six third party processors, nine payment service providers, one credit bureau company, and 2,478 money changers . In addition, total number of credit and debit cards increased to 74,130 and 1,813,435 cards respectively.
In 2017, banking operations have launched 44 new branches, and 273 new ATM terminals in addition to the existing 1,260 ATM machines.