Credit growth starts to cool off
New data released by Cambodia’s independent credit reporting agency indicate a significant slowdown in the rate of lending during the second quarter of the year, a sign that banking industry experts claim is due to a tightening of lending criteria and less seasonal demand from the struggling agricultural sector. The Credit Bureau Cambodia said in its inaugural quarterly publication that overall credit applications – which include personal finance, credit cards and mortgages – decreased by 25 per cent during the second quarter of the year. Personal finance and mortgage applications decreased by 26 per cent and 10 per cent, respectively, since the first quarter. “The fall is mostly due to a decrease in personal finance applications in all regions of Cambodia,” the report stated. “Mortgage applications have also experienced a slight drop in the number of applications, but the value seems to remain stable [compared to the first quarter].”
