PHNOM PENH, Sep 2 (Khmer Times) – Credit inquiries in Cambodia are rising, and the percentage of private loan inquiries is expected to nearly double by 2020, according to the Cambodian Credit Bureau (CBC).
“As the population ages, more people come into the market looking for loans,” CBC’s chief executive Garry Wood said today during a conference on the future outlook on lending and credit demand.
By 2020, the number of private borrowers is expected to reach 3.3 million.
“Customers will grow in every age group, and there is an appetite [for credit],” Mr. Wood added.
CBC promotes financial stability and the development of economic diversification among all of its member banks, microfinance institutions (MFI), leasing companies and rural credit operators.
Chea Chanto, governor of the National Bank of Cambodia, said, “CBC reduces the cost of borrowing by reducing losses created by fraudulent applications.”
Mr. Chanto explained that CBC is directly responsible for diminishing the risk of credit loans in the banking sector.
Cambodia has improved its ranking from 99 to 42 in the world for ease of access to loans. The country currently has one of the lowest delinquency rates of any country.
Mr. Wood explained that detailed and accurate credit information is vital for effective evaluation in the financial sector.
“When information is applied diligently, this reduces the risk of investment,” he said.