A staff at a private bank counts money in Phnom Penh. Heng Chivoan
Prime Minister Hun Manet stated that banks and financial institutions in Cambodia are crucial for supporting socio-economic development and encouraged them to consider expanding their services.
Speaking at the inauguration of the Wing Bank Tower in Phnom Penh on December 20, Manet said the event symbolised growth in the private banking sector, particularly among domestic investors.
He expressed satisfaction with the recent expansion of domestic banks, highlighting the country’s self-reliance and capability in domestic money transfers.
“The expansion of the banking sector will facilitate client services. However, maintaining a balance is necessary, and the disbursement of cash to clients must be carefully evaluated, particularly during challenging times. A vital aspect of our economy is that without cash flow, economic paralysis occurs,” he explained.
The prime minister reiterated the government’s commitment to developing the economy and a digital society.
He said his government is implementing the first phase of its Pentagonal Strategy to stimulate socio-economic development, aiming for upper-middle-income status by 2030 and high-income one by 2050, in response to the fourth industrial revolution (Industry 4.0).
“The Financial Technology Development Policy 2023-28 is a significant and proud milestone in promoting technology in the financial sector [fintech] to foster inclusion,” he stated.
He added that these policy frameworks are crucial for the banking sector, especially given the rapid advancement of technology, particularly in finance. The adoption and adaptation of digital systems in banking not only foster financial inclusion but also contribute to building digital infrastructure and using technology for growth and sustainability.
Hong Vanak, an economic researcher at the Royal Academy of Cambodia’s International Relations Institute, noted the distinct roles and duties of state and private banks, including financial institutions.
“Banks play a vital role in holding, lending and managing money. [Doing this] effectively is central to stimulating economic activity and growth, as it is the heart of our economies,” he said.
To maintain the strength of the financial and banking sectors and enhance their role in economic activities, the prime minister recommended that institutions explore wider service provisions and offer more loans to micro, small and medium enterprises (MSMEs), particularly in the agricultural sector, including green loans for rice crops and other activities.
“This task is crucial for the functioning of economies. Finance also plays an important role in the banking system. Our National Bank of Cambodia (NBC) has been instrumental in facilitating and supporting bank operations,” he stated.
Manet added that the NBC has been actively engaged in negotiations with various countries to facilitate tourist trade through payment systems such as QR codes.
