Cambodia’s Banking Sector Surges in 2024 with Over 23 Million Accounts and $54 Billion in Deposits

Cambodia’s banking and microfinance sector reported impressive growth in the first half of 2024, with over 23 million deposit accounts acros...

Cambodia’s banking and microfinance sector reported impressive growth in the first half of 2024, with over 23 million deposit accounts across banks and microfinance institutions, amounting to deposits exceeding $54 billion. These insights were shared by Rath Sophoan, President of the Banking Association of Cambodia (ABC), and Dith Nita, Chair of the Cambodian Microfinance Association (CMA), at ASEAN Savings Day 2024.

The National Bank of Cambodia hosted this year’s ASEAN Savings Day, spotlighting the theme “The Importance of Saving Money from a Young Age.” Sophoan cited the National Bank’s mid-year report, which highlights a 6% increase in the assets of Cambodian banking institutions, reaching approximately $88 billion.

Banking institutions represented over 95% of these assets, with microfinance institutions contributing 3.6% and the financial leasing sector at 0.5%. Consumer loans also rose by 2.6%, totaling close to $59 billion across 4 million accounts.

Significantly, customer deposits climbed by 13.4%, hitting around $51.9 billion, with banking sector accounts rising to 21.3 million. “This growth in deposits reflects strong public confidence in Cambodia’s formal banking sector,” Sophoan stated.

Meanwhile, Dith Nita reported that Cambodia’s four deposit-taking microfinance institutions held deposits of approximately $2.2 billion by the second quarter, a 4% increase from the previous year, with nearly 2 million active customer accounts. She anticipates that further growth will be fueled by innovative services that simplify banking access for more Cambodians.

Nita also highlighted the value of savings initiatives, which she believes will enhance financial stability and encourage responsible money management across the country. Both Sophoan and Nita emphasized the importance of saving within formal financial institutions, urging the public to cultivate and expand their savings habits to secure financial benefits and minimize risks.