The National Bank of Cambodia. (Source: Panoramio)

Phnom Penh (VNA) – The banking system of Cambodia is thriving, contributing to the country’s economic growth, the National Bank of Cambodia (NBC) has reported.

A new report released by the NBC showed that total assets of Cambodian banks hit 27.8 billion USD by the end of 2016, while their credits and deposits reached 17.6 billion USD and 15.4 billion USD, respectively.

Given the fiercer competition in the Cambodia banking market, lending rates have fallen consecutively as banks’ average lending rate in the US dollar dropped from 17 percent in 2015 to 11.8 percent last year. 

The NBC is optimistic about the country’s expansion of economic activities in 2017, since the Cambodian Government is speeding up comprehensive structural reform in all sectors as well as its integration into the ASEAN Economic Community.

The country’s strategic location, continued tax preferences for exports to the EU and US markets and young workforce are considered as important factors that will fuel Cambodia’s growth.

According to forecasts by international financial institutions such as the International Monetary Fund (IMF), the World Bank (WB), the Asia Development Bank (ADB) and the Cambodian Government, Cambodia’s economy is projected to expand by 7 percent in 2017. -VNA