Cambodia

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An Overview of the
An
Banking Sector of Cambodia

Charles Vann
Executive Vice President
Canadia Bank Plc.

Content
Content
Introduction
Introduction
Economy of the World
Economy
Economy of Cambodia
Economy
Banking Sector of Cambodia
Banking
SWOT Analysis
SWOT
Recommendation
Recommendation
Conclusion
Conclusion

Introduction
Introduction
Cambodia is situated on the southwestern part of the
Cambodia
Indochina peninsula.
It shares a 2,615km border with:
It
Vietnam: 1,270 km
Vietnam:
Thailand: 805 km
Thailand:
Laos: 540 km
Laos:
Cambodia began to return to a period of peace in 1993.
Cambodia
It became a member of ASEAN in 1999 & WTO in 2004.
It
Population (2008e): 15 million.
Population

Economy of the World
Economy
Economy issues in the first semester of 2008: Mortgage
Economy
Loan Crisis, Depreciation of USD, Petroleum Price,
Inflation etc.
GDP increase in 2008 (forecasted):
GDP
USA: 1.3%
USA:
E.U: 1.7%
E.U:
Japan: 1.5%
Japan:
China: 9.8%
China:
India: 8%
India:
ASEANs: 5.7%
ASEANs

Economy of Cambodia
Economy
GDP growth: 10% (2004), 13.4% (2005), 10.8% (2006),
GDP
10.1% (2007) & 7.2% (2008 forecast)
7.2%
From 2005 to 2007, the economy grew by average of
From
11.3% per year.
GDP per capita: USD 597 (2007)
GDP
Inflation: 4.4% (2006) to 7.1% (2007)
Inflation
International Reserves: USD 2.2 billion (June 2008)
International
Foreign Exchange: Stable
Foreign
Engines of growth: Garments, Tourism, Construction
Engines
& Agriculture

Banking Sector of Cambodia (1)
Banking
Banks are very liquid (loans to deposits ratio is about 65%) Banks
Bank resources are mainly short-term: almost all deposits
Bank
and loans are short-term, less than 1 year and in USD
Public confidence in the banking system is recovering
Public
The total assets grew from US$1.4 billion in 2005 to US$3.5
The
billion in 2007.
In 2007, Loans and Deposit increased 75% and 77%,
In
respectively.

Banking Sector of Cambodia (2)
Banking
Financial Depth and Outreach
2005
Total Loans (millions US$)

2006

2007

594.00

893.60

1,695.45

Loan Growth (%)

26.00%

50.40%

89.70%

Loans as % of GDP

10.80%

12.40%

19.71%

906.90

1,312.00

2,469.84

Deposit Growth (%)

14.10%

45.00%

88.00%

Deposits as % of GDP

16.50%

18.20%

28.72%

Loans as % of Deposits

65.50%

68.00%

69.00%

% Cash of Total Deposits

38.00%

35.00%

31.00%

Number of Loans per 1000 people

36.00

44.00

57.04

Number of Deposits per 1000 people

24.00

28.00

41.94

Number of FIs per 1000 people

0.20

0.30

0.28

Number of branches per 1000 people

2.20

6.70

8.35

Total Deposits (millions US$)

Source: NBC & MEF

Banking Sector of Cambodia (3)
Banking
Number and Type of Financial Institution
2004
Number of Banks

2005

2006

2007

17

19

20

24

12

15

16

20

Foreign Banks

3

3

3

3

State-Owned Banks

2

1

1

1

13

16

16

17

Leasing Companies

0

1

1

1

Insurance Companies

4

4

4

7

Private Local Banks

Licensed MFIs

Source: NBC & MEF

Banking Sector of Cambodia (4)
Banking
As of June 2008, the Banking Sector of Cambodia is
As
composed of:
22 commercial banks: 3 foreign branch banks and 19
22
locally incorporated
7 specialized banks: 1 state owned (Rural Development
specialized
Bank) and 6 local privately owned
2 representative offices: Standard Chartered and Vietnam
representative
Bank for Agriculture and Rural Development
17 licensed MFIs and 26 registered MFIs
17

Banking Sector of Cambodia (5)
Banking
Legal Framework: to support the reforms, legislative
Legal
framework has been improved. New laws and regulations
were issued in anticipating the banking restructuring.
Law on the Organization and Functioning of NBC
Law
(1996)
Law on Banking and Financial...
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