NBC suspends Panda Bank’s licence over operational decline

NBC suspends Panda Bank’s licence over operational decline

The national bank asks Panda Bank deposit customers to prepare necessary documents to withdraw their funds, which will be processed in accordance with the Law on Banking and Financial Institutions.

The National Bank of Cambodia (NBC) has suspended the licence of the Penda Commercial Bank Plc (Panda Bank), which held less than 1 percent of the banking market share, after determining that the bank’s financial condition had deteriorated following six years of operations.

In a public notice issued on Monday, NBC stated that, based on compliance with applicable laws, regulations and prudential supervision, Panda Bank’s financial condition had declined to the point where it could no longer provide banking services.

As part of the regulatory action, the national bank has appointed Morisonkak MKA audit-accounting Co Ltd as the interim administrator and liquidator of Panda Bank. During the interim administration period, Panda Bank is suspended from providing any new banking services, including accepting deposits and granting loans.

Morisonkak MKA audit-accounting Co Ltd has been granted the authority to manage and administer all operations and assets of Panda Bank from the date of the notice.

The NBC instructed Panda Bank deposit customers to prepare the necessary documents to withdraw their funds, which will be processed in accordance with the Law on Banking and Financial Institutions.

According to the NBC, Panda Bank was licensed as a commercial bank in 2019. By the end of 2025, the bank held total assets of approximately $776 million, with outstanding loans of around $536 million and deposits of about $502 million. The bank’s market share accounted for 0.77 percent.

The national bank, along with relevant ministries and institutions, will continue to closely monitor the liquidation process to ensure the protection of depositors’ and customers’ interests, the statement said.

Speaking to Khmer Times, Ky Sereyvath, a renowned economic researcher at the Royal Academy of Cambodia, said that the decision to revoke the bank’s license and appoint an interim administrator is a regulatory mechanism designed to safeguard the stability of Cambodia’s banking system.

Sereyvath explained that when the NBC determines a bank has failed in its operations and is facing significant losses or potential insolvency, the national bank has the authority to revoke its license and assume control of its operations to manage assets and liabilities, including settling debts and protecting depositors.

“Such intervention mechanisms are intended to prevent disorderly bank failures that could cause depositors to lose their savings or borrowers to face legal and financial uncertainty over assets such as land, houses and other collateral pledged for loans,” he noted.

Based on the Prakas on Panda Bank’s licence revocation issued on February 20, the liquidator is granted exclusive authority to manage all operations and represent the institution.

The Prakas also required the liquidator and all persons involved in the liquidation process to maintain strict professional confidentiality regarding any information, data, or documents obtained from the NBC or the institution under liquidation.

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