Wednesday, 17 August 2011

Current Development of Banking and Financial Sector in Cambodia

Above: the National Bank of Cambodia. Below: tourists can find the ATM machines everywhere in Phnom Penh

The development of the banking and financial sector in Cambodia is generally viewed as a success with the recent progress of modern banking and micro-financial institutions. Recently, with the recent establishment of Cambodia Stock Exchange (CSX)  in July 2011 in which a series of laws and regulations (Law on the Issuance and Trading of Non-Government Securities, Law on Government Securities, Law on Financial Leases) have been adopted in preparation of the opening the new bourse with a common aim of banking and financial development, Cambodia is trying to enter the phase of modernization of its financial sector. The National Bank of Cambodia (NBC) is the central bank which has dual roles of banking regulation and supervision. The first and foremost priority of the NBC is to ensure macroeconomic stability and financial stability (NBC, 2008). It goal is to maintain price stability in Cambodia.

To better understand the development of banking and financial sector in Cambodia, we should take a look into its history. In the 1990s, the banking sector in Cambodia started to thrive with the introduction of the free market economy. Then, the privately owned commercial banks and foreign bank branches/subsidiaries started to appear gradually one by one. From 1998–2001. According to the new banking law, each commercial Bank must have a minimum start-up capital of 50 billions Riel (approximately $13 million). Major reforms to the banking system introduced under new Governor H.E. Chea Chanto. New banking law classifies financial institutions into three categories: i) Full Commercial Banks with a minimum paid-up capital of $13 million, ii) Specialised Banks – minimum paid-up capital of $2.5 million, and licenced/registered Microfinance Institutions (MFIs). This reform has resulted in significant increase of financial sustainability and confidence level of depositors and investors. Due to structural reform in the financial sector, the number of commercial banks was decreased considerably, but micro-financial institutions emerged and began to grow rapidly. From 2002 to Present, Reform process continues. Recently the National Bank of Cambodia decided to keep the reserve requirment rate at 12% for all financial institutions. However, the banking system initially suffers from over-liquidity and lack of quality borrowers. Now, Cambodian people and tourists enjoy the good service of the banking sector, which now has 29 commercial banks and 6 specialized banks (Association of Banks in Cambodia, 2011). ATM machines are almost everywhere in Phnom Penh and other tourist citys such as Siem Reap and Sihanoukville.

The establishment of the Cambodia Stock Exchange (CSX) in July 2011 by the Government is a milestone progress for modernization of the financial sector in Cambodia. The trading operations will soon begin by next year. Undoubtedly, these achievements are contributed by Securities and Exchange Commission of Cambodia (SECC), Ministry of Economy and Finance, and Cambodia’s central bank, the NBC, with its prudent policies and regulations, and the government’s steadfast adherence to the market, freedom from exchange controls and unrestricted capital movements. However, along with this optimism, there are also a lot of concerns and criticisms on the opening of stock market in Cambodia since the global economy has just started to recover from the financial crisis and Cambodia’s hesitation and insufficient regulatory framework (lack of e-commerce law, etc.) and lack of human resource in the financial and IT sector.

Other articles on Cambodia: 

    (5 March 2014)

    (17 October 2011)

    (03 October 2011)

    (12 September 2011)

6. Review of Cambodia's Economy and Finance (up to 2011)
    (31 August 2011)

     (22 August 2011)

    (17 August 2011)

    (17 August 2011)

    (16 August 2011)

      (15 August 2011)

      (15 August 2011)


  1. Urban and upscale

    According to reliable furniture shop in Phnom Penh
    construction materials
    information, the featured interior living with an open-plan setting was designed to have a voluminous and contemporary feel.
    "The entrance not only marks the threshold – it also makes a dramatic visual statement, setting the scene for the rest of the interior," said one of the owners. "The oversize scale of the doors conveys a sense of heightened expectation. It also emphasizes the ceiling height and the spacious interior beyond."
    "Furnishing such a large area was a challenge," stated one of the owners. "Anything small looked insignificant and out of place. It was also important to avoid a cluttered look, hence the choice of over-scale leather furniture, an extra-large coffee table, and a sculptural wire chair. The visual impact also comes from being able to display key artworks in the right environment – in many ways, the space functions as an extension of the gallery."
    "We love the modernist aesthetic of the honed concrete block and the way it helps to warm up the interior, so it doesn't feel hard or cold. We also love the textural contrast between the concrete, wood and glass."

  2. The Triangular Geometry House

    Here is the contemporary and amazing house; Pitched Roof House has been designed by Chenchow Little Architects, leading to furniture shop in Cambodia
    construction materials stated.
    As the architects said, “Unlike a traditional pitched roof, the triangles not only pitch up, but also invert to form a faceted roof plane.
    The triangular geometry of the roof is continued down onto the facades of the house, and became the basis for articulating openings.
    The variability of the triangular geometry gave us the freedom to push and pull the building form as required to suit the brief of the client, the local town planning codes, the scale of the neighboring roofs, and the requirement for solar access to the living rooms.
    The living rooms are located on the top floor to take advantage of the sculptural roof plane, the views across Sydney harbor, and sunlight.
    Bedrooms are located on the lower levels were outlook and solar access are compromised by neighboring houses”.

  3. Modern Warmly Wooden House

    This wonderful MS house with an uncommon building site was designed by Yo Yamagata Architects, trustworthy to furniture shop in Cambodia construction materials provided.
    The amazing part of this house is the first floor is a cantilevered with steel beams which make the house looking like floating construction.
    In addition, architects mentioned, “At first we dug soil to the halfway of the slope; this was for the basement floor which is constructed with concrete. The wooden floor is supported by the basement floor.”
    More interestingly, owing to the abundance of wooden elements, the interior are surprisingly warm.

  4. Colorful and Light Interior Decoration

    Can you imagine what this charming interior will look like by just looking from the street? For sure, you cannot. This apartment located in the heart of the Ostermalm area, Stockholm, trustworthy to construction in Cambodia
    construction materials.
    Occupied a total surface of 83 square meters, it was said to be a well-organized and tastefully renovated apartment. It accommodated a generous living room with exit to the balcony in line with peaceful bedrooms and additional bedroom, exclusive and stylish bathroom and spacious dressing room with abundant of storage space.
    This spacious loft is excellent for a sofa and dining area for many guests. It was truly contribute to the cozy atmosphere.

  5. Superb incredible going, I cherish your work and look forward for more work from your side. I am a customary guest of this site and at this point have recommended numerous individuals. Prize Bond List