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A senior official from the National Bank of Cambodia (NBC) have urged all stakeholders—including financial institutions, regulators, government agencies, and international partners—to collaborate in building a robust financial ecosystem. This initiative aims to address the rapid economic changes and emerging risks currently faced by both global and regional economies.
Mr. Em Kamnan, Deputy Director General of NBC, made this call during the opening ceremony of the 3rd Banking Conference in Cambodia 2024. The event, themed “Financial Sector Unity: Strengthening Cooperation to Build a Solid Financial Foundation,” was organized by the Association of Banks in Cambodia (ABC) and took place on August 22-23, 2024.
“As we gather here today, it is evident that our world is undergoing swift transformations,” Mr. Kamnan stated. “Global economic shifts, technological advancements, and unforeseen challenges—such as pandemics and climate change—highlight the necessity for a strong and adaptable financial system.”
He acknowledged that while Cambodia has made significant progress in developing its financial sector, now is the time to accelerate efforts to establish a foundation capable of withstanding future uncertainties. “Our banking sector has seen remarkable growth in recent years, reflecting the resilience and adaptability of our financial institutions. However, this growth comes with the responsibility to ensure our banking system is not only thriving but also resilient against both domestic and global challenges,” he added.
To achieve this goal, Mr. Kamnan emphasized the importance of a holistic approach to the financial sector. “We must strengthen cooperation among banks, financial institutions, regulators, government bodies, and international partners. Fragmented strategies leave us vulnerable to systemic risks and inefficiencies that could impede economic progress.”
“When we unite our resources, expertise, and ideas, we can create a resilient and integrated financial ecosystem capable of fostering sustainable growth,” he asserted.
Mr. Rath Sophoan, Chairman of the Association of Banks in Cambodia said that according to a World Bank report for the first half of 2024, Cambodia’s economic growth is projected to average 5.8%, an increase from 5.6% in 2023. This growth is attributed to a recovery in garment exports, travel goods, footwear exports, and tourism.
However, Mr. Sophoan noted that due to Cambodia’s small and open economy, it has also faced negative impacts from various global challenges. Despite these obstacles, the banking sector remains resilient and continues to expand. He reported that banking sector assets have increased by approximately 15%, with a capital adequacy ratio exceeding 22%. The liquidity coverage ratio (LCR) stands at 179%, and non-performing loans (NPLs) account for 6.8%. Consumer loans have risen by 12% compared to the previous year.
Looking ahead to the second half of 2024, Mr. Sophoan expressed optimism as inflation has slowed and the riel exchange rate against the dollar has stabilized. He also highlighted that numerous public projects implemented by the Royal Government are positively impacting the local economy.
