Friday, June 2, 2023
Khmer Daily Cambodia News
34 °c
Phnom Penh
  • LATEST
  • CAMBODIA
  • ASIA
    • JAPAN
    • SOUTH KOREA
    • TAIWAN
  • WORLD
    • CHINA
    • RUSSIA
  • BUSINESS CAMBODIA
  • TECHNOLOGY
No Result
View All Result
  • LATEST
  • CAMBODIA
  • ASIA
    • JAPAN
    • SOUTH KOREA
    • TAIWAN
  • WORLD
    • CHINA
    • RUSSIA
  • BUSINESS CAMBODIA
  • TECHNOLOGY
No Result
View All Result
The Khmer Daily
No Result
View All Result
Home ASIA Cambodia

Credit Bureau of Cambodia report consumer credit applications rose 53%

November 13, 2020
in Business, Cambodia, National
0
Credit Bureau of Cambodia report consumer credit applications rose 53%
0
SHARES
12
VIEWS
Share on FacebookShare on Twitter

Consumer credit applications rose 53 percent in the third quarter of 2020, compared with figures for the second quarter of the year, according to a Credit Consumer Index report by the Credit Bureau of Cambodia (CBC). The CBC is the leading provider of credit information, analytical solutions and credit reporting services to banks, microfinance institutions, lending companies, credit operators and consumers in Cambodia. It began operations in 2012.

Consumer credit applications represent consumers’ desire to acquire credit in the form of personal finance, credit cards or mortgages, said the CBC.

This quarter’s rise in credit applications stands in contrast to a decline in credit applications in the second quarter of 2020 compared with first-quarter figures.

The CBC noted that during the third quarter of 2020, personal finance applications rose by 52 percent, credit card applications were up by 83 percent and mortgage applications increased by 50 percent.

A look at the same categories of second-quarter credit applications against first-quarter statistics shows personal finance applications dropped by 50 percent, credit card applications were down by 43 percent and mortgage applications fell by 51 percent.

Oeur Sothearoath, chief executive officer of the CBC, said that the trends of the last few years suggest that this is indicative of a cyclical pattern of a rise in consumer credit applications in Q3 after a fall in Q2. He said that the same pattern extends to credit card applications as well. In addition, the economic slowdown contributed to a much stronger fall in consumer credit applications earlier in the year.

“It is likely that the rise in Q3 2020 was much stronger than other years because of  the market showing preliminary signs of stabilising and improvement after the sharp fall in Q2 2020,” Sothearoath added.

PRASAC’s Executive Vice-President and Chief Marketing Officer Say Sony, welcomed the news as a good indication of economic recovery.

He said that as of September 2020, PRASAC’s loan portfolio stood at $2.862 billion, an increase of 14.43 percent compared with 2019 figures.  The loan portfolio mixture is 64.31 percent in business loans with the remaining 35.69 percent being personal loans.

“People took on personal loans for a number of purposes. Among them being home improvement, real estate, automotive, green driven and emergency loans among others. However, as of September 2020 the demand for business loans was more robust than the demand for personal loans.  That said, the portfolio quality of personal loans performed better than business loans,” Sony said.

According to the CBC report, the ratio of late repayments 30 days past their due date, indicated as 30+DPD as of September 2020, was 2.42 percent on personal finance, credit cards and mortgages. This represents a drop from the 2.64 percent figure in June.

The CBC added that the consumer loan balance by type as of September 2020, was $9.11 billion. The loan balance by category was split roughly 51.51 percent in mortgages, 47.90 percent in personal finance and 0.58 percent in credit cards.

Sothearoath highlighted earlier that with the fast-paced changes in market conditions, the digitalisation of credit-risk management can help financial institutions to speed up and undertake more transparent and effective risk-profiling, risk-based pricing and portfolio management. He said the CBC is committed to delivering data, analytics and knowledge to enhance the efficiency of credit-risk operations, credit decision-making as well as contribute to financial-sector stability. “The CBC introduced two new products that blend data and digitalisation for credit-risk management to members of financial institutions, products that generate a measure of credit-worthiness known as a K-score,” he said.

K-Score is a number that summarises all information in a borrower’s credit history to enable lenders to quickly assess the potential likelihood of default by borrowers.

The second generation of K-Score will be commercially available this year, Sothearoath added.

This article was first published in Khmer Times. All contents and images are copyright to their respective owners and sources.

Tags: Bureau of CambodiaCambodiaCredit Bureau of Cambodia
Previous Post

5G in Cambodia comes a step closer by Cellcard

Next Post

UK sheds record number of jobs in pandemic fallout

Related Posts

Chinese tiremakers bet on recovery via new plants in Cambodia

Chinese tiremakers bet on recovery via new plants in Cambodia

by Khmer Times
May 30, 2023
0
2

Manufacturers in China, the world’s largest producer and exporter of tires, are building factories abroad in an optimistic mindset to...

Cambodia Mekong River cruise business ‘slowly’ getting back on track

Cambodia Mekong River cruise business ‘slowly’ getting back on track

by Khmer Times
May 30, 2023
0
0

Mekong River cruise business is getting back on track, but at a slow pace, according to a prominent player in...

$2 million electric motorbike assembly plant in Cambodia by Verywords Co Ltd launched

$2 million electric motorbike assembly plant in Cambodia by Verywords Co Ltd launched

by Khmer Times
May 30, 2023
0
3

South Korean eco-friendly electric two-wheel vehicle supplier Verywords Co Ltd inaugurated its plant to assemble electric scooters in Kandal province,...

Most Popular

2 Chinese tourists’ naked bodies found in Bali hotel

2 Chinese tourists’ naked bodies found in Bali hotel

May 6, 2023
221
Oriental Bank Plc, new commercial bank in Cambodia, to enter market ventured by G Capital Bhd, Public Bank Bhd, E S Packaging

Oriental Bank Plc, new commercial bank in Cambodia, to enter market ventured by G Capital Bhd, Public Bank Bhd, E S Packaging

December 12, 2020
3.6k
Harry takes a seat at coronation, but no balcony appearance

Harry takes a seat at coronation, but no balcony appearance

May 8, 2023
6
Korea’s wiring harness manufacturer starts production in Kampong Speu of Cambodia

Korea’s wiring harness manufacturer starts production in Kampong Speu of Cambodia

April 27, 2023
5
Dara Sakor International Airport in Koh Kong province of Cambodia delayed due to unfinished construction

Dara Sakor International Airport in Koh Kong province of Cambodia delayed due to unfinished construction

May 19, 2023
5
Upside down flags: SEA Games organiser apologises for gaffe in opening ceremony

Upside down flags: SEA Games organiser apologises for gaffe in opening ceremony

May 8, 2023
4

© 2020 By Khmer Daily News

No Result
View All Result
  • Home
  • Latest
  • Cambodia
  • ASIA
  • World
  • Business
  • Tech

© 2019 The Khmer Daily.

error: Content is protected !!