In 2024, deposits in the Kingdom’s banking and financial sector grew to approximately $57 billion, an increase of 16 per cent over 2023. The volume of loans grew by just three per cent.

An annual report from the National Bank of Cambodia (NBC) for 2024 showed that deposits equalled $57 billion.

On March 21, the Cambodia Microfinance Association (CMA) reported on official social media platform that, by the end of 2024, the total amount of loans in the banking and financial sector reached $59.9 billion.

“Between 2023 and 2024, loans grew by just three per cent, while deposits grew by 16.3 per cent,” said the CMA.

The CMA noted that the terms “debt” and “loan” are not inherently bad, with loans extended to customers across various sectors.

Credit Bureau Cambodia (CBC), a registry for loan transactions from individuals and business entities, announced last week that by the end of 2024, 5.04 million Cambodians took out loans or accessed credit.

As of the end of 2024, 5.04 million Cambodian citizens – or 51 per cent of the over-18-year-old population – had utilised credit or taken out loans. Among the loans, 6.03 per cent are in repayment arrears by more than 90 days.

According to the CBC, Phnom Penh, Kandal Province, and Siem Reap Province account for about 60 percent of the total loan balance. It explained that these locations are centres of economic activity, with higher populations.

Hong Vanak, an economist at the Royal Academy of Cambodia, told The Post that when the volume of loans increases and they are used for business creation or expansion, they provide positive returns, driving national economic growth and increasing personal and family incomes.

“The growth of credit may reflect an increase in investment or the expansion of business operations to drive economic growth,” he said.

He added that the volume of loans is not at a level that should cause concern, with the current rate of late repayment not a major issue.