Public confidence in Cambodian banks is growing

2009-08-27

PHNOM PENH, Aug. 27 (Xinhua) -- Public confidence in Cambodia's banking sector is growing and has managed to withstand the onslaught from the global economic crisis, local media reported on Thursday, quoting the director general of the National Bank of Cambodia (NBC).

While speaking at a roundtable discussion on banks and public confidence, which was organized by the Club of Cambodian Journalists, Nai Im, director general of the NBC, was quoted by the Cambodia Daily as saying that bank deposits had increased to almost 29 percent of gross domestic product in 2008, up from just 14 percent in 2000.

"The public confidence in the banking sector and financial system is reflected through the increase in deposits, credit and total assets of the banking sector," she said.

Though banks worldwide have declared massive losses as a result of the global economic crisis, total bank assets in Cambodia increased 21 percent to more than 4.2 billion U.S. dollars in 2008and loans increased by a third to 2.4 billion U.S. dollars, according to the National Bank's annual report released last week.

Deposits, however, were hit hardest, increasing only four percent to more than six billion U.S. dollars in 2008, compared to75 percent growth in 2007.

"Although the Cambodian economy is free and open to the rest of the world, the Cambodian banking system did not directly suffer from the consequences of the financial crisis," Nai Im said.