Kingdom’s banks see rising foreign influx
Kingdom’s banks see rising foreign influx
Cambodia’s banking sector saw an almost 32 percent increase in foreign capital inflow in 2017, a result of new foreign banks and stricter capital requirements set by the National Bank of Cambodia, according to the central bank’s annual report.
The nonbanking sector saw a more modest 0.8 percent increase in foreign capital inflow last year, with the real estate and garment sectors experiencing a slight decrease compared to 2016. “Inflows of foreign capital into the Kingdom’s banking sector increased 31.8 percent, thanks to the establishment of the two new banks: [France’s] BRED Bank and [Japan’s] Mizuho Bank,” the report said.
It also noted that the national bank’s March decision to raise the minimum capital requirements for commercial and subsidiaries of foreign banks operating in Cambodia to $75 million contributed to the growth. According to the report, most of the foreign capital inflow came from Asian countries such as China, Vietnam, South Korea, Malaysia, and Singapore.
