According to data attributed to the Cambodia Microfinance Association (CMA), a nongovernment organization established in 2004 to promote Cambodia’s microfinance sector, the value of microloans disbursed by its 32 members increased approximately 38 percent to USD 890 million and total deposits increased 144 percent to USD 280 million from 2011 to 2012.
The International Monetary Fund (IMF), an international finance institution that seeks to promote global financial stability, reportedly lauded Cambodia’s general economic performance in 2012, but warned that additional policy buffers were necessary to guard against the risk of repeating the experience of other Asian countries in which rapid credit growth coincided with increased financial system volatility. As part of its effort to counter these risks, the National Bank of Cambodia (NBC), the central bank of the country, raised the reserve-to-loans requirement for lenders and established the Cambodian Credit Bureau, an organization that shares information on Cambodian borrower with lenders, as was reported by MicroCapital in April 2012.
By Brian LeBlanc, Research Associate
About Cambodia Microfinance Association (CMA): The Cambodia Microfinance Association (CMA) was established in 2004 by seven Cambodian microfinance institutions. CMA’s mission is to facilitate microfinance operators in their operations and to strengthen their communications with national and international donors, creditors, investors, and regulators. There are 34 active members as of February 2013.
About the International Monetary Fund (IMF): The International Monetary Fund (IMF) is an organization of 186 countries working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote employment, promote sustainable economic growth and reduce poverty around the world. The IMF was created after the Second World War to oversee the international monetary system to ensure exchange rate stability and encourage members to eliminate trade restrictions. The IMF’s mission is to help ensure stability in the international system by keeping track of the global economy and the economies of member countries, lending to countries with balance of payments difficulties and otherwise assisting its members.
About the National Bank of Cambodia (NBC): Established in 1954, the National Bank of Cambodia (NBC) is the country’s central bank. Among its functions, the NBC establishes and monitors the country’s monetary policy, supervises and regulates the country’s financial sector and issues the country’s currency.
Sources and Additional Information
PhnomPenhPost.com article, February 4, 2013, “Loans and Deposits Climb,” http://www.phnompenhpost.com/2013020461166/Business/loans-and-deposits-climb.html
IMF Public Information Notice (PIM) No. 13/01, January 8, 2013, http://www.imf.org/external/np/sec/pn/2013/pn1301.htm
MicroCapital.com story, January 31, 2013, “MICROCAPITAL BRIEF: International Finance Corporation Paying $2m for Stake in Arm of Cambodia’s ACLEDA Bank Being Established in Myanmar,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-paying-2m-for-stake-in-arm-of-cambodias-acleda-bank-being-established-in-myanmar/
MicroCapital.com story, January 8, 2013, “MICROCAPITAL BRIEF: ACLEDA Bank of Cambodia Borrows $40m From IFC Capitalization Fund,” https://www.microcapital.org/microcapital-brief-acleda-bank-of-cambodia-borrows-40m-from-ifc-capitalization-fund/
MicroCapital.com story, October 21, 2012, “MICROCAPITAL BRIEF: responsibility Social Investments Loans $8m to Prasac of Cambodia, $1m to ASKI of the Philippines,” https://www.microcapital.org/microcapital-brief-responsability-social-investments-loans-8m-to-prasac-of-cambodia-1m-to-aski-of-the-philippines/
MicroCapital.com story, April 3, 2012, “MICROCAPITAL BRIEF: Cambodian Credit Bureau (CCB) Begins Operation in Phnom Phen after Four Years of Planning,” https://www.microcapital.org/microcapital-brief-cambodian-credit-bureau-ccb-begins-operations-in-phnom-penh-after-four-years-of-planning/
MicroCapital Universe Profile: Cambodia Microfinance Associations (CMA) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Cambodia+Microfinance+Association
MicroCapital Universe Profile: International Monetary Fund https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Monetary+Fund+%28IMF%29
MicroCapital Universe Profile: National Bank of Cambodia (NBC) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=National+Bank+of+Cambodia+%28NBC%29
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/
Similar Posts:
- MICROCAPITAL BRIEF: QR Codes to Facilitate Retail Payments Across Cambodia-Laos Border
- MICROCAPITAL BRIEF: UN, EU Supporting SMEs Involved in Fisheries in Cambodia via Capfish-Capture Program
- MICROFINANCE PAPER WRAP-UP: “Land Titling and Microcredit in Cambodia: Examining the Reality of Hernando de Soto’s ‘Three Steps to Heaven,’” by Milford Bateman
- MICROCAPITAL BRIEF: Non-performing Loan (NPL) Ratios Up Among Microfinance Providers in Bangladesh
- MICROFINANCE EVENT: Sa-Dhan National Conference on Inclusive Growth; November 8-9, 2023; New Delhi, India
