The report shows that the Bakong system processed 771.2 million-Riel transactions last year, a 1.6-fold increase compared to 2024. The total value of these transactions reached KHR 285.9 trillion, up 59.4 percent year-on-year.

Meanwhile, U.S. dollar transactions through Bakong surged by 79.7 percent in volume, amounting to 554.5 million transactions, equivalent to US$152.8 billion, an increase of 49.3 percent over the previous year.

NBC Governor H.E. Mrs. Chea Serey emphasised the central bank’s commitment to modernising Cambodia’s payment infrastructure.

“Even though the current payment system is advancing, we will continue to improve Cambodia’s payment infrastructure to enable real-time, secure, and efficient transactions for both businesses and consumers, supporting the country’s broader financial modernisation and digital economy goals,” she said.

The Bakong system, which has become a cornerstone of Cambodia’s digital finance strategy, now provides businesses and consumers with faster, safer, and more efficient payment options, reinforcing the government’s vision of a cashless economy.

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The official launching ceremony was presided over by H.E. Dr. Aun Pornmoniroth, Deputy Prime Minister and Minister of Economy and Finance, H.E. Dr. Chea Serey, NBC Governor and Chairwoman of the Financial Sector Development Steering Committee, and H.E. Vijay Kumar Akasam, Head of Country Operations of the Asian Development Bank to Cambodia, as well as representatives from ministries, institutions, and development partners.

The “Financial Sector Development Strategy” is a roadmap for long-term financial sector development that has been updated five times and has been implemented for about 25 years, starting from the implementation of the Financial Sector Development Vision and Plan 2001-2010, H.E. Dr. Aun Pornmoniroth said.

The Deputy Prime Minister spoke highly of the successful preparation of the “Financial Sector Development Strategy 2025-2030” by relevant ministries and institutions.

“The Cambodian economy has recovered rapidly and continued to be on a strong growth path following the global COVID-19 crisis, despite continuing to face challenges and high uncertainties in the regional and global situation,” he said.

Currently, despite facing retaliatory tariffs and encroachments on national sovereignty and territorial integrity, the Cambodian economy is expected to achieve a growth rate of around 5.2 percent in 2025 and around 5 percent in 2026, H.E. Dr. Aun Pornmoniroth added.

The strategy aligns with the government’s Pentagonal Strategy – Phase 1 and Cambodia’s long-term goal of becoming an upper-middle-income country, positioning the financial sector as a driver of resilience, productivity and inclusive development in an uncertain global environment.

NBC Governor H.E. Dr. Chea Serey said that the strategies implemented so far have strengthened the foundations of a stable, diversified, modern and integrated financial system.

“With the vision of transforming Cambodia into an upper-middle-income country, the financial system must be capable and dynamic to support more interconnected economic activity, deeper integration, and higher productivity,” she underlined.

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H.E. Hean Sahib, Secretary of State at the Ministry of Economy and Finance (MEF) and CSX Chair, presided over the event in Phnom Penh on Feb. 24.

The Secretary of State welcomed the move, stressing that the bond listing at SCX, which is a platform and regulator for capital market activities, does not only allow better financing options for ACLEDA Bank’s capital expansion but also builds trust among its investors.

H.E. Sou Socheat, Delegate of the Royal Government in charge as Director General of Securities Exchange and Regulator of Cambodia (SERC), congratulated ACLEDA Bank for issuing the subordinated bonds with the largest issuing size and amount following its issuance and stock listing since June 2020.

Dr. In Channy, President and Group Managing Director of ACLEDA Bank, remarked that raising capital through the Cambodia securities market, including the issuance of equity and bonds, has allowed the bank to secure a strong source of financing.

“This subordinated bond issuance is a financial instrument currently being utilised by banks around the world, including ACLEDA Bank, to contribute to strengthening and expanding the bank’s business scope, fostering sustainable growth with efficiency and trust,” he said.

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“Cambodia’s current international reserves are considered to be at an appropriate level, equivalent to about 7 months of imports of goods and services for any emergency,” said NBC Governor H.E. Dr. Chea Serey in the NBC’s annual meeting held here last Saturday.

International reserves are a country’s cash and other assets that are held by its central bank. These reserves are used to influence a country’s currency value, meet international payment obligations, and maintain financial market confidence.

International reserves under the NBC’s control include foreign currencies, gold and SDR (Special Drawing Right).

The NBC governor said that lending at the Kingdom’s banking and financial institutions continued to grow at a slower pace last year due to the slow recovery of sectors such as construction and real estate, tourism, and wholesale and retail.

On the deposit side, she added, the banking and financial institutions saw the good growth of 16.3 percent last year, reflecting that the banking system was resilient with strong confidence from the public.

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Chaired by H.E. Dr. Chea Serey, Governor of the NBC, the meeting was to share updates on the Royal Government of Cambodia’s strategies, action plans and initiatives, to gather additional inputs on the development of Cambodia Sustainable Finance Roadmaps, Cambodia Green Finance Taxonomy and setting roles and duties of the working group as well as to discuss its priorities and future workplan.

This inter-ministerial mechanism also provided opportunity for each member to share information and knowledge relevant to climate change mitigation, which is a goal for the globe as well as the Royal Government of Cambodia for sustainable development.

The NBC, relevant ministries and institutions and Banking and Financial Institutions in Cambodia have been actively involved in promoting green finance to support sustainable and low-carbon economic growth.

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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.

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The launching ceremony was held on Aug. 29 in the presence of H.E. Dr. Chea Serey, Governor of the National Bank of Cambodia (NBC), Mr. Rath Sophoan, Vice-Chairman of the ABC, Mr. Sok Voeun, Chairman of CMA, Mr. Nget Chek, Deputy Director General of Consumer Protection Competition and Fraud Repression Directorate-General (CCF), bankers and other stakeholders.

The Standard Loan Contract and Standard Text of Contractual Terms allow all members to have a unified standard loan agreement and standard text of contractual terms in their respective financial institutions’ loan contracts when banks and financial institutions communicate and provide loans to the public and their clients.

This guideline will be applied to commercial banks, specialized banks, microfinance deposit-taking institutions, microfinance institutions, rural lending institutions, and financial leasing companies.

Addressing 300 participants during the launching ceremony, H.E. Dr. Chea Serey said the Standard Loan Contract and Standard Text of Contractual Terms for Banks and Financial Institutions is a contribution to the implementation of the first phase of the 7th-mandate Royal Government’s Pentagonal Strategy.

“This is another new achievement in contributing to consumer protection as well as financial inclusion in Cambodia,” she stressed.

The Standard Loan Contract, which demonstrates the contribution of the NBC as well as the Royal Government in supporting consumer protection, as well as strengthening financial inclusion in Cambodia, is reflected through the provision of a responsible manner, and ethical competition, she added.

Mr. Rath Sophoan, ABC Vice Chairman, said that this Standard Loan Contract will contribute to promoting transparent competition, improving customer protection, and contributing to the development of the banking and financial sector in Cambodia in a stable, sustainable, and inclusive manner.

“The achievements of the collaboration between all members and the support of the NBC will contribute to the development of the banking system and increase the trust of the people, investors, and stakeholders in the banking system,” continued Mr. Sophoan.

Mr. Sok Voeun, Chairman of CMA’s Board of Directors, said that the Standard Loan Contract and Standard Text of the Contractual Terms are essential for both customers and all banking and financial institutions because they will help maintain sustainability for the banking and financial sector as a whole.

“This is a minimum standard that is jointly implemented and can help to keep the sustainability of the sector,” he said.

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, according to an NBC report.

Outstanding loans rose by 13.8 percent year-on-year to US$58.6 billion by June this year, while customers’ deposits increased by 6.4 percent to US$44.4 billion dollars.

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In a report published Wednesday, the BIS said 93 percent of 86 central banks surveyed late last year were working on CBDC payment mechanisms. More than half were running concrete tests or working on pilots. The latest survey comes three years after former Bank of Japan Policy Board member Sayuri Shirai found that the National Bank of Cambodia was among three central banks leading the world in retail CBDC development.

The others were the People’s Bank of China and Sveriges Riksbank in Sweden. UNCERTAINTY FADING “Uncertainty about short-term issuance of a CBDC is fading,” the BIS report said. In addition to Cambodia, the survey found that central banks and monetary authorities in Brunei, Indonesia, Malaysia, the Philippines, Singapore, and Thailand are now “engaged in some form” of CBDC work.

Among all central banks surveyed, work on retail CBDCs was more advanced than on wholesale CBDCs — with almost a quarter piloting a retail CBDC. “More than 80 percent of central banks see potential value in having both a retail CBDC and a fast payment system, mostly because a retail CBDC has specific properties and may offer additional features,” the report said. “The survey suggests that there could be 15 retail and nine wholesale CBDCs publicly circulating in 2030.” EMERGING MARKET AND DEVELOPING ECONOMIES ‘MORE ADVANCED’ THE BIS said 58 of the central banks surveyed were in emerging market and developing economy (EMDE) jurisdictions and 28 in advanced economies.

EMDE central banks are “more advanced” in their CBDC work, the report said, noting that the four current “live” CBDCs have all been issued in EMDE jurisdictions — by central banks in the Bahamas, Eastern Caribbean, Jamaica, and Nigeria. Moreover, the share of EMDE central banks piloting CBDCs is almost twice as high as in advanced economies. MORE ISSUES EXPECTED OVER NEXT THREE YEARS The share of central banks likely to issue a retail CBDC within the next three years grew to 18 percent, up from 15 percent in the last survey in 2021. The likelihood of wholesale CBDC issues doubled from 8 percent to 16 percent over the same period.

For retail CBDC issues, the survey found that motives among EMDE and advanced economy central banks were converging. “Domestic payments efficiency and payments safety have become nearly equally important as motivations in both,” the report said. Both “also attach about the same weight to the financial stability and cross-border payments efficiency reasons.” FINANCIAL INCLUSION MOTIVATIONS But there are two key differences — retail CBDC work in EMDE central banks is “more often driven by financial inclusion-related motivations” compared with central banks in advanced economies.

EMDE central banks also “assign a higher weight to monetary policy implementation as a reason to explore or develop a CBDC.” As for stablecoins and other crypto assets, the survey found that they are “rarely used for payments outside the crypto ecosystem.

“Some 60 percent of surveyed central banks reported that they have stepped up their CBDC work in response to the emergence of crypto assets,” the report said. CRYPTO MARKET RISKS “The turbulence in the crypto market in 2022 and the beginning of 2023 has shown that crypto assets pose risks when not properly designed and regulated. “Continued monitoring will help central banks to identify emerging risks and promptly address such risks with effective standards, oversight, and policies.”

SURVEY DEFINITIONS The BIS defines a CBDC as “a digital payment instrument denominated in the national unit of account, which is a direct liability of the central bank.” A retail CBDC is for use by households and firms for everyday transactions whereas a wholesale CBDC is for transactions between banks, central banks, and other financial institutions. Crypto assets are defined as “a type of private sector-issued digital asset that depends primarily on cryptography and distributed ledger or similar technology.”

In contrast to CBDCs, they don’t represent a claim on a central bank. Set up in Switzerland in 1930 to settle German reparations arising from World War I, the BIS is the world’s oldest international financial institution. Long dominated by advanced economies, membership expanded rapidly after the Asian financial crisis of 1997 to include dozens of EMDE central banks. Current membership covers 63 jurisdictions.

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Banking institutions’ outstanding loans were recorded at more than US$46 billion, a 12 percent increase year-on-year, and outstanding loans at MFIs were US$9.7 billion, up 15 percent, read the report. Banking institutions received deposits of US$39 billion as of June 2023, up 6.4 percent compared to the same period last year while those at the MFIs were US$4.9 billion. The loans were allotted to key sectors such as trade, housing, construction, agriculture, hotels and restaurants and manufacturing, etc.

The banking industry has remained strong despite the uncertainty of global economic growth, NBC Governor H.E Chea Chanto said at a recapitulative meeting held on July 30-31 in Preah Sihanouk province. The growth in both loans and deposits truly reflected public confidence in the country’s banking system, he said.

“The banking industry remains robust and resilient, and it has continued to play an active role in supporting the Kingdom’s economic recovery in the post-COVID-19 pandemic era,” he said.

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, the report pointed out.

The Kingdom has also registered 20.2 million e-wallet accounts, with 30.3 million transactions worth US$89.7 billion during the January-June period this year.

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Cambodia’s economic growth was supported by high growth in the tourism sector, continued growth in agriculture, and signs of recovery of the construction sector despite the decrease in the manufacturing sector due to the decline of external demands, explained the central bank.

In the first half of 2023, the inflation rate dropped to 1.2 percent from 4.1 percent in the second half of 2022, it pointed out.

During the same period, the exchange rate continued to remain stable, at 4,094 Riel for a U.S. dollar, while foreign reserves reached US$18.4 billion, equal to seven months of imports and services.

NBC has forecast the country’s economic growth at 5.5 percent in 2023, with an expected yearly inflation rate of 2 percent.

The economic growth of Cambodia in 2022 was estimated at 5.2 percent, supported by export growth, resumption of domestic economic activities, and rapid recovery of tourism.

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