Original title: Number of financial institutions in Cambodia grows, banking system remains stable
China News Agency, Phnom Penh, February 11 (Reporter Ouyang Kaiyu) Cambodia added two new commercial banks last year, bringing the number of commercial banks to 54. According to the latest report of the National Bank of Cambodia, the number of financial institutions in Cambodia has grown and the banking system has remained robust.
The National Bank of Cambodia reported on the 11th that as of December 31, 2021, the number of Cambodian commercial banks increased to 54, an increase of two new commercial banks from 52 in 2020. Last year, the number of microfinance institutions with deposit-taking licenses remained unchanged, while the number of microfinance institutions that could only issue loans increased to 79, an increase of 4 compared with the previous year.
According to the National Bank of Cambodia, Cambodia’s banking system has remained robust during the COVID-19 pandemic, with new loans continuing to grow rapidly. As of December 31 last year, the total loans of banks and microfinance institutions increased to 45.7 billion US dollars, an increase of 21.2% over the same period of the previous year; the total deposits increased to 38.5 billion US dollars, an increase of 15.4%; the total assets also increased to 68.2 billion US dollars, up 16%.
According to the National Bank of Cambodia, the financial industry is also the most important economic area to attract foreign direct investment. Of the US$39 billion in foreign investment attracted in the first half of last year, the financial industry accounted for 21.9%; followed by manufacturing, real estate, hotels and restaurants, agriculture, energy, construction, etc.
Local public opinion pointed out that Cambodia adopts a free market economic policy, allowing foreign investors to hold 100% equity in commercial banks and other financial institutions, coupled with a highly dollarized economy and no restrictions on the inflow and outflow of funds, thus attracting many foreign funds into the financial market. (Finish)
【Editor: Zhang Aolin】