Cambodia’s banks report 20.7% lending growth in H1

Cambodia’s banks report 20.7% lending growth in H1

Loan demands from the banks in Cambodia rose by 20.7% to 26.7 billion U.S. dollars during the first half of 2020, said a central bank’s biannual report on Thursday.

The Southeast Asian nation has 51 commercial banks and 14 specialized banks, with 1,112 branches and 2,516 ATMs (Automated Teller Machines) nationwide, said the National Bank of Cambodia (NBC)’s report.

It said 26.1 percent of the loan went to retail and wholesale trade, 28.8% to real estate, construction and mortgage, 8.8% to personal loans, 7.5% to agriculture, forestry and fisheries, and 28.8% to other sectors.

According to the report, 81% of the banks’ capital came from customers’ deposits.

It added that the interest rate for fixed deposits in U.S. currency was averagely 4.81% per annum, while the interest rate for loans in U.S. currency was 9.93%.

NBC’s governor Chea Chanto said at the NBC’s biannual meeting earlier this week that although the COVID-19 pandemic had posed a severe threat to the economic growth, the banking industry still saw solid growth and had actively contributed to providing liquidity to the economy.

“In the banking sector, main risks arising from the prolonged COVID-19 pandemic include a decline in the incomes of people and businesses which can lead to a drop in the growth of loans and deposits, a fall in construction and real estate, and a slowdown in foreign capital inflows into the banking sector,” he said. Enditem