Cambodians Borrowed Nearly $60 Billion from Banks Last Year: Is That a Bad Thing?

As of the end of 2024, Cambodians had nearly $60 billion in outstanding loans from the banking and financial sector. Meanwhile, 2024 data from the National Bank of Cambodia showed that customer deposits in the sector had reached $57 billion. Between 2023 and 2024, credit grew by just 3%, while deposits increased by 16.3%.

So what does the amount borrowed by Cambodians from banks and financial institutions indicate?

The Cambodia Microfinance Association has said that debt, or credit, is not necessarily all bad. Credit in Cambodia is distributed to customers across a range of sectors, including retail trade, owner-occupied housing, real estate trading, personal loans, construction, agriculture, forestry and fishing, wholesale trade, manufacturing, hotels and restaurants, and other sectors.

We also see higher levels of debt or credit in Phnom Penh, Kandal and Siem Reap. This may be because these areas are centers of economic activity and have large populations.