The National Bank of Cambodia (NBC) released its Financial Stability Review for the first time on Wednesday, outlining the work needed to monitor economic security and develop macro-prudential measures to cope with systemic risks.
The Financial Stability Review has been produced by NBC since 2011 but only for internal use. The new review, comprising 38 pages, was produced with technical assistance from the International Monetary Fund (IMF).
Speaking at Wednesday’s launch, IMF resident representative for Cambodia Yong Sarah Zhou expressed her appreciation at the release of the review.
She said it is very comprehensive and provides high-quality analyses identifying risks in economic and financial systems.
“We know that Cambodia’s financial sector has been growing rapidly, becoming an increasingly complicated system,” she said.
“The publication of the report provides the platform to share the NBC’s will on economic and financial development to identify risks in economic and financial systems, and also to discuss possible policies to mitigate potential risks.”
The review was produced with a specific focus on three main factors – macro-economic conditions, stability and outlook; financial system conditions and assessments; and macro-financial linkages and potential risks to financial stability.
NBC deputy director-general of central banking Khou Vouthy on Wednesday said higher incomes and better access to financial services has led to an increase in credit to individuals, boosting investment and consumption.
He said close inspection into the composition of credit revealed a large proportion of it was meant for business purposes.
“Despite rapid growth, credit quality is not yet a cause for concern,” he said. “NBC will continue to closely monitor credit to individuals going forward.”