Bank sector at risk: S&P
The National Bank of Cambodia (NBC) lacks the resources to enforce regulatory standards and bail out underperforming banks during times of need, credit ratings agency Standard & Poor’s says. Cambodia’s banking sector was labelled high-risk, with a score of nine out of 10 on S&P’s2014 Banking Industry Country Risk Assessment, released Friday. … With 44 banks (including specialised banks) in Cambodia, return on equity averaging 8.1 per cent between 2009 and 2013, credit growth increasing about 30 per cent per year and loan-to-deposit ratios nearing 100 per cent, S&P concluded that the banking sector will remain vulnerable as competition intensifies and margins narrow. …
Eddie Morton
http://www.phnompenhpost.com/business/bank-sector-risk-sp
