Cambodia’s Financial Stability Amid Global Economic Uncertainty.
Global economic turbulence continues to intensify as geopolitical tensions rise and trade restrictions re-emerge. Institutions such as the World Bank and the International Monetary Fund have warned that a significant economic downturn may be unavoidable, and JP Morgan has predicted that the global economy could enter recession by the end of 2025. Cambodia, as an open and trade-reliant economy, faces exposure to these shifting conditions. Nevertheless, its economic growth has remained steady, supported by strong fundamentals and disciplined macroeconomic policy. Cambodia’s core growth engines, including exports, tourism, and investment, are sensitive to external shocks, yet the resilience demonstrated thus far reinforces confidence in the nation’s stability.
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Policy Leadership Underpins Confidence
The National Bank of Cambodia (NBC) has played a central role in maintaining financial momentum through prudent and flexible oversight. Its most recent semester report highlights stable exchange rates, declining interest rates, and low inflation. These outcomes have protected household purchasing power and reinforced investor trust. Despite the structural challenge of dollarisation, the stability of the exchange rate has served as an effective buffer against external volatility. NBC Governor Chea Serey reaffirmed the institution’s commitment to economic safeguarding, stating: “Maintaining macroeconomic stability and building resilience is crucial not only for financial markets but also for the livelihoods of citizens.” Efforts to increase the use of the Cambodian riel reflect longer-term goals of strengthening monetary sovereignty and enhancing regional payment connectivity within ASEAN and ASEAN+3 frameworks.
Resilient Banking and Expanded Regulation
As global markets contend with inflation risks and fragile recovery, Cambodia’s banking institutions remain stable and well-capitalized. The NBC has intensified risk-based supervision and introduced additional prudential regulations to safeguard financial assets. Work continues on a depositor protection program to shield public savings. Both the Association of Banks in Cambodia (ABC) and the Cambodia Microfinance Association (CMA) collaborate closely with the regulator to prevent systemic risks while encouraging lending in strategically essential sectors such as agriculture, real estate, and MSMEs. The NBC also prioritizes consumer protection, digital security, and financial literacy campaigns to strengthen trust and ensure that citizens avoid online financial fraud.
Sustainable Finance and AML Strengthening
Cambodia is aligning its financial system with global sustainability standards. The NBC’s green finance roadmap aims to influence lending practices and promote environmentally responsible investment. Simultaneously, the Cambodia Financial Intelligence Unit (CFIU) has intensified anti-money laundering (AML) and counter-terrorism financing (CTF) enforcement. Enhanced training and international cooperation help ensure compliance with global norms, reinforcing investor confidence while protecting financial integrity.
Navigating External Challenges in 2025 and Beyond
Despite its strength, Cambodia’s financial sector must be cautious. Export competitiveness may be tested by protectionist policies, trade wars, and softer global consumer demand. Domestically, slow construction and elevated debt burdens challenge credit growth. Rising non-performing loans (NPLs) require continued vigilance. Changes in global interest rates and capital flows could also provoke volatility. Ongoing prudential supervision and sufficient reserve maintenance will be essential in mitigating these risks.
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Nearly $100 Billion in Financial Assets
The NBC report reveals noteworthy performance indicators. Total assets in the financial system grew to approximately $97.1 billion in the first half of 2025, an increase of 7.3 percent. Deposits surged by 14.5 percent, reaching $61.5 billion, demonstrating ongoing trust among households and businesses. Cambodia’s expanding financial network comprises hundreds of licensed institutions, thousands of branches, and nearly 6,000 ATMs nationwide. Over 28 million deposit accounts and 4.3 million loan accounts are now active, showing continued improvement in nationwide access to formal finance.
Credit Performance and Market Behavior
Credit from deposit-taking institutions rose by 2.9 percent to $59.1 billion, supporting key economic sectors such as real estate, retail trade, agriculture, and construction. Deposit interest rates eased, improving liquidity and encouraging investment. Loan rates in riel declined, although US dollar lending rates remained relatively stable. These trends indicate cautious recovery and a stronger competitive environment for borrowers.
Confidence as a Source of Strength
NBC Governor Chea Serey concluded that national resilience relies not only on markets and policies but on public trust. “Cambodia’s resilience reflects not just strong fundamentals, but the confidence of its people in the nation’s financial system. It is this confidence that will continue to drive our economic strength amid an unpredictable world.”
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Banking and Microfinance: Parallel Engines of Inclusion
The Association of Banks in Cambodia confirms that peace, political stability, and macroeconomic discipline support nationwide investor confidence. ABC spokesperson Sok Chan emphasized compliance and digital transformation as strategic priorities, stating that ongoing regulatory strengthening and consumer protection remain integral to sectoral trust. Deposit growth continues to surpass credit growth, reinforcing liquidity.
Microfinance institutions remain essential to rural economies and financial accessibility. CMA spokesperson Kaing Tongngy highlighted that MFIs support a vast share of national borrowers through responsible lending practices, digital expansion, and educational outreach. Comprehensive borrower data from the Credit Bureau Cambodia reduces overlapping risk while ensuring inclusion in formal finance structures.
A Financial System Committed to the Future
Cambodia’s banking and microfinance sectors remain well-positioned to sustain economic growth, even as global conditions fluctuate. Strong capital buffers, a widening digital ecosystem, risk-aware lending strategies, and enhanced regulation collectively reinforce sectoral safety. The outlook remains stable despite manageable challenges, and capacity for future expansion remains robust.