The National Bank of Cambodia (NBC) has reported that the country's banking sector continues to demonstrate strong capital buffers and prudent risk management, even as non-performing loans (NPLs) have trended upward. According to the central bank's mid-year report for 2026, the gross NPL ratio reached 9.6 percent by the end of June, rising from 8.4 percent at the close of 2025.
Officials attributed this growth in NPLs to ongoing domestic and international economic challenges, specifically citing the prolonged downturn in the construction and real estate sectors, which has hampered the repayment capacity of some borrowers. However, the NBC emphasized that the financial system remains secure. The net NPL ratio stands at 3.3 percent, a gap that officials say reflects sufficient provisioning by financial institutions to cover potential credit losses.
During a press conference in Phnom Penh, an NBC official stated, "The low level of the net NPL ratio shows that financial institutions have set aside sufficient funds for potential credit losses, helping to reduce risks to financial stability."
Data from the report indicates that total credit in the banking sector grew by 4.6 percent year-on-year to $64.2 billion by June 2026, while customer deposits rose by 4.4 percent to $64.4 billion, signaling continued public confidence in the financial system. Additionally, banks have restructured 239,546 accounts totaling $4.8 billion, representing approximately 7.5 percent of the total credit portfolio. The NBC noted it is gradually transitioning these restructuring measures back to normal operations to further bolster the system's integrity.
Moving forward, the central bank plans to maintain rigorous oversight of financial institutions through risk-based supervision and forward-looking monitoring to ensure long-term economic growth and stability.
Source: Khmer Times
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