Bank Borrowers Total Reaches 5 Million

A client is receiving a service from ACLEDA Bank.

PHNOM PENH – Five million people have loans from the banking system, amounting to 232,393,394 million riel, or about $57.6 billion, Credit Bureau Cambodia (CBC) says.

A CBC report sets out the credit data of individuals and institutions or enterprises from 194 banking and financial institutions which were CBC members  in 2023.

People in Phnom Penh, Kandal and Siem Reap owed 60 percent of the total to banks or microfinance institutions.

Phnom Penh had the largest loan volume at 114,496,214 million riels ($28.5 billion) borrowed by 676,000 people. This is half of the  loans nationwide.

Kandal province had 384,000 borrowers for 13,163,593 million riels (about $3 billion).

This was 7.8 percent of the total loan balance nationwide, while Siem Reap had a loan volume of 4.6 percent with 325,000 borrowers.

The provinces with fewest borrowers were Mondulkiri, Pailin and Kep.

The rate of late repayments over 90 days was 4.6 percent by the end of 2023.

The provinces with the lowest late repayment rates were Svay Rieng at 2.7 percent, Takeo at 3.1 percent, Prey Veng at 3.2 percent,   Kep at 3.2 percent and Stung Treng at 3.3 percent.

Phnom Penh had 5.2 percent late repayment, Kandal had 5 percent and Siem Reap 7.8 percent.

“About 76 percent of people nationwide borrowed from one institution and about 20 percent borrowed from two institutions,” the CBC said. “Only one percent of people across the country borrow from three institutions.”

Oddar Meanchey, Preah Vihear and Pailin provinces had less than 70 percent borrowing rates from one institution.

Chea Serey, Governor of the National Bank of Cambodia, said borrowing from banks or microfinances was not bad.

“It is important that we need to know what we are using it for,” she said. “If we borrow money to earn extra income, that is a good thing.

“But if we borrow money and use it for the wrong purpose, such as buying a new motorcycle or phone, it’s wrong.”

She encouraged people to make a habit of saving money with official institutions as an additional source of income.
Originally written in Khmer for ThmeyThmey, this story was translated by Teng Yalirozy for Cambodianess. 

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