Withdrawals top hundreds of millions
More than $600 million flooded out of Cambodia’s entire banking system during the third quarter of this year, as fears of post-election chaos set off panic and mass withdrawals, new figures from the National Bank of Cambodia (NBC) reveal. The figures, obtained yesterday, were the first system-wide indicators of how the banking sector fared since the July 28 poll awarded the election to the ruling Cambodian People’s Party. The results triggered allegations of foul play from the opposition, creating a tense stand-off marked by protests and go-nowhere negotiations. National Bank of Cambodia Deputy Director General Chea Serey said yesterday that the sharp decline was expected every five years due to elections, but that this time around, it “probably” was the largest dip ever. … The climate of fear extended to the financial sector, where many mistrusted the level of security maintained at banks. Deposits fell from $7.2 billion at the end of June 2013 to $6.6 billion at the end of September. … That means that account holders withdrew close to $630 million, or 8.7 per cent, of the total number of deposits held in Cambodia’s 34 commercially registered banks. … Charles Van, president of the Association of Banks in Cambodia, said the industry had made it through the withdrawal frenzy, and he did not expect any lingering effects. …
Daniel de Carteret
http://www.phnompenhpost.com/business/withdrawals-top-hundreds-millions
