It’s been almost 2 decades since the central bank moved to clean up the country’s private banks. Back then, Cambodia didn’t have a single ATM.

Today, branches with ATMs are common in provincial areas, deposits have increased, and credit has grown quickly. Minimum capital requirements have been raised. And in a country where cash was once king, electronic payments are now widespread.

With an extremely young population, Cambodia has seen the numbers of bank depositors grow enormously in recent years.

Most are too young to remember the three bank closures of 1999. And, unlike their parents or grandparents, many young Cambodians are wary of keeping their savings in gold or in cash at home under the bed.

The move toward deposit insurance in Cambodia is being spearheaded by Naoyuki Yoshino, dean of the Tokyo-based Asian Development Bank Institute, which provides input to policy makers in member countries.

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Read Fair Premium Rate of the Deposit Insurance System based on Banks’ Creditworthiness

https://www.adb.org/publications/fair-premium-rate-deposit-insurance-system-based-banks-creditworthiness

By Naoyuki Yoshino https://www.adb.org/adbi/about/dean

Farhad Taghizadeh-Hesary https://www.asiapathways-adbi.org/author/farhad-taghizadeh-hesary/

Farhad Nili