NBC: Bank Credit Reaches US$37.3 billion in 2020; Over 30% Allocated to Construction & Property Sectors

• 21 January 2021
• Local News
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Customer credit at banks in Cambodia reached US$37.3 billion in 2020, a 14.8% increase; and over 30% of which was allocated to the construction and property sectors, according to a recent National Bank of Cambodia report.

The same report also added that bank credit given to the construction sector was 9.2%, property 8.5%, and mortgages 12.8% respectively.

Meanwhile, as of the end 2020, the active assets of the banking sector in Cambodia reached US$59.5 billion, while deposits were recorded at US$33.8 billion, a 15.7% and 15.4% increase, respectively.

Banking and microfinance institutions in Cambodia were also doing well in keeping their credit secured. Although non-performing loans slightly increased by 2.7% for banks, and 1.8% for microfinance institutions, the rates are still low and controllable.

Given the pandemic, restructured loans in 2020 increased to over 280,000 accounts or equivalent to US$4.2 billion. However, the number of transactions fluctuated from month to month depending on the demand and economic condition.

Overall, according to the report, the banking and microfinance sectors in Cambodia remain robust amid the pandemic. However, NBC also predicts other risks that can possibly affect banking sectors.

Those risks include the prolonged pandemic, slow economic growth in the region and the world, protectionism, climate change, rise in family debt, a slowdown in tourism, and especially any downward trend in the construction and property sectors.

The World Bank has recently forecasted Cambodia’s economy will grow by 4% in 2021, while ADB positively foresees that growth will rebound by 5.4% in 2021. (Read more and more)

• Economy and Finance
• Policy and Strategy