PHNOM PENH: Cambodia's outstanding loans rose by 10.5 percent year-on-year to US$57.8 billion by June 2023, according to a report by the National Bank of Cambodia (NBC). This growth was driven by loans to the wholesale and retail trade, mortgages, agriculture, services, real estate, construction, households, manufacturing, and other sectors.

The NBC report also showed that customers' deposits increased by 6.4 percent to US$44.4 billion by June 2023. The banking sector played an important role in the economic and social development of Cambodia, NBC said, adding that supervision of banking and financial institutions remains a priority task.

Cambodia has 59 commercial banks, nine specialized banks, and 87 microfinance institutions across the country, with 16.5 million deposit accounts and 3.8 million credit accounts. Cambodia has also registered 20.2 million e-wallet accounts, with 30.3 million transactions worth in total US$89.7 billion during the January-June period this year.

The 10.5 percent growth in outstanding loans is a positive sign for the Cambodian economy. It indicates that businesses and consumers are borrowing money to invest and grow. This growth is likely to continue in the second half of 2023, as the Cambodian economy is expected to remain strong.

In its last updated economic report, the ADB lowered its 2023 economic growth forecast for Cambodia to 5.3 percent from an earlier prediction of 5.5 percent, mainly due to slower-than-expected industry growth.

However, according to the report of the ADB, the economic growth maintained the country's 2024 growth forecast at 6 percent.