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Cambodia 2012 Investment Climate Statement

In:

Submitted By nicktm
Words 1465
Pages 6
Capital Market Development in
Capital
Cambodia
Hanoi, 1st March 2007

Dr. Hang Chuon Naron
Secretary General
Ministry of Economy and Finance

Contents
Contents
Overview of Financial Market





Present financial system in Cambodia
Banking Sector
Insurance Sector
Fixed Income Securities and equity

Capital Market Development in Cambodia guided by:
- Financial Sector Blueprint 2001-2010 (FSB2001-2010) approved on August 24th, 2001
- Financial Sector Development Strategy 2006-2015 (Approved by the Royal Government of Cambodia on February 9th , 2007)

Develop 4 I’s for Capital Market





Infrastructure investor Issuers
Intermediaries

Way forward

Overview of Financial Market
Overview

Present financial system in Cambodia
Present
Players in Financial Sector:
● Dominance of banking system:
The central bank, that is the National Bank of Cambodia with its
The
18 provincial branches,
15 commercial banks, 4 specialized bank,
15
A decentralized banking system, consisting of MFIs and a number decentralized of NGOs operating in the rural finance.

● 4 Insurance Co.,
● No inter-bank/money market
● No equity & securities market, no securities company
● Active foreign exchange markets due to high degree of

dollarisation (90% of banks transactions in US$, large volume of USD cash in circulation).

Banking Sector
Banking


– Banks are very liquid (loans to deposits ratio 65%), but despite large resources they are still reluctant to take lending risks – Banks resources are mainly short-term: in fact almost all deposits and loans are short-term, less than 1 year, and in
USD.
– Credit information sharing system among banks in place.

But a series of reforms are under ways to promote intermediation :






Legal basis & basic regulatory framework for banking system
established.

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