2015-02-09
The National Bank of Cambodia (NBC), on January 9-10, 2015, held its annual meeting discussing on NBC’s 2014 achievement and 2015 goal, presided over by H.E. Chea Chanto, Governor of the National Bank of Cambodia.
In 2014, the NBC has prudently and flexibly implemented the monetary and exchange rate policy to maintain price stability, which has contributed to macroeconomic stability in Cambodia. In particular, the inflation rate was around 1.1% at the end of December 2014 which is the lowest level in the region, while the exchange rate was also stable at around 4,040 Riels per US dollar.
In the meantime, Cambodia’s banking system has also been developing in a sound and safe manner, with strong competition and well integrated into the region and the globe, in line with the Financial Sector Development Strategy 2011-2020. Financial deepening (M2/GDP), banks and financial assets, deposits, and loans increased to 63%, 112% of GDP (USD18.6 billion), 64% of GDP (USD10.6 billion), and 68% of GDP (USD11.4 billion), respectively, in which assets of the banking sector increased by 28% while the deposits and loans increased at the same rate of 31%. Cambodia’s Micro Finance Institutions are internationally recognized as one of contributors to supporting the economic growth and poverty reduction in Cambodia.
Moreover, banking and microfinance institutions have expanded their branch networks across the country, especially to rural area, which has enabled them to serve more clients. The number of population who gained access to the financial services out of the total adult population increased to 42% in 2014 compared to 19% in 2000.
In terms of international cooperation, the NBC continues to regularly strengthen and expand both bilateral and multilateral cooperation among other central banks, financial institutions and training centers in the region and the globe in order to exchange information and experiences as well as to improve technical cooperation. Furthermore, not only has the NBC supported and contributed many initiatives to create the ASEAN Economic Community by the end of 2015, but has also participated in developing financial safety nets for the region, both ASEAN and ASEAN+3.
