Cambodia - Country Commercial Guide
Trade Financing
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Methods of Payment

Letters of credit are the most common method used to facilitate payment and are preferred over bank guarantees, cash in advance, and open accounts.   Other payment methods such as forward exchange contracts, standby letters of credit, foreign currency loans, and import and export letters of credit can be tailor-made to an individual importer or exporter.  Instruments and methods of payment offered by banks vary, ranging from import and export documentary collections, documentary export and import credits, open account, consignments, cash-in-advance, and guarantees.  For large-scale business transactions, exporters and importers are required to have bank guarantees, such as shipping, bid, payment, advance payment, performance, and retention money guarantees.  Private commercial banks provide trade finance services and have foreign correspondent banks in the United States, Europe, Asia, and elsewhere. Not all Cambodian commercial and specialized banks, however, handle trade finance.  Commercial banks in Cambodia may use an external credit rating agency, such as Standard & Poor’s.

For more information about the methods of payment or other trade finance options, please read the Trade Finance Guide available at https://www.trade.gov/trade-finance-guide-quick-reference-us-exporters.

Banking Systems

Ninety percent of Cambodia’s financial assets are located in the country’s banking system.  Banking system assets increased by 20.9  percent last year to approximately $34.93 billion, equivalent to 143 percent of GDP.    Credit was concentrated in key economic sectors such as wholesales and retails (27.5 percent), agriculture (8.9 percent), construction (9.2 percent), real estate activities and owner-occupied housing (17.4 percent), and other sector (37 percent).  At the same time, banks’ total deposit amount stood at $22.18 billion.

Non-performing loans ratio remained at 2.2 percent in 2018 compared to 2.4 in 2017.  The banking industry’s Return on Asset (ROA) and Return on Equity (ROE) were 1.6 percent and 8.40 percent, respectively.

Cambodia’s banking sector is expanding rapidly. By the end of 2018, the sector has 43 commercial banks, 14 specialized banks, 74 microfinance institutions, seven microfinance deposit-taking institutions, 273 rural credit institutions, five representative offices, 15 financial leasing companies, 14 payment service providers, one credit bureau company, and 2,779 money changers .   In addition, total number of credit and debit cards increased to 102,151 and 2,172,263 cards respectively.

In 2018, total number of ATM terminals of banking system reached 3,742 compared to 3,072 in 2017.

Foreign Exchange Controls

Under the 1997 Foreign Exchange Law, there are no restrictions on foreign exchange operations, including the purchase and sale of foreign exchange and the transfer of all types of international settlements. The government intervenes, however, to promote macroeconomic stability by managing the exchange rate, which is very closely pegged to the U.S. dollar.  The current exchange rate in May 2016 was 4,063 riel to the U.S. dollar, but the use of U.S. currency predominates in large transactions.  The law stipulates that only authorized intermediaries may perform these transactions.  In reality, many unregistered money exchangers perform currency exchange services. The authorized financial intermediaries are lawfully established banks, which are required to report to the National Bank of Cambodia on the types of transfers and outflow or inflow of capital. In Phnom Penh, there are 75 licensed moneychangers and 47 authorized moneychangers.  In the provinces, there are two licensed and 1,886 authorized moneychangers.

Investors are not required to report on transactions of funds.  The burden rests solely on the bank as the authorized intermediary.  Article 13(1) of the Law on Foreign Exchange requires the import or export of any means of payment equal to or exceeding $10,000 or an equivalent amount to be reported to Customs authorities at the relevant border crossing point, and the Customs authorities should transmit this information on a monthly basis to the National Bank.  While foreign exchange transfers are not currently restricted, the law does allow the National Bank to implement exchange controls in case of a foreign exchange crisis; however,  the law does not clearly specify what would constitute a crisis.  There are currently no restrictions on the repatriation of profits or capital derived from investments either in Cambodia or on most transfers of funds abroad.

US Banks & Local Correspondent Banks

There are no U.S. banks operating in Cambodia.

The following are the major banks that have correspondent U.S. banking arrangements:

Angkor Capital Specialized Bank 

Tel: (855) 23 993 168; Fax: (855) 23 994 168

E-mail: info@angkorcapitalbank.com

Website: Angkor Capital Specialized Bank

 

Acleda Bank Plc.

Tel: (855) 23 998 777; Fax: (855) 23 998 666

E-mail: enquiry@acledabank.com.kh

Website: Acleda Bank Plc.

 

ANZ Royal Bank

Tel: (855) 23 999 000; Fax: (855) 23 221 310

E-mail: ccc@anz.com

Website: ANZ Royal Bank

 

Campu Bank

Tel: (855) 23 214 111; Fax: (855) 23 217 655

E-mail: campupnh@campubank.com.kh

Website: Campu Bank

 

Canadia Bank

Tel: (855) 23 215 286; Fax: (855) 23 427 064

E-mail: canadia@canadiabank.com.kh

Website: Canadia Bank

 

Foreign Trade Bank

Tel: (855) 23 724 466; Fax: (855) 23 426 108

E-mail: ftb@camnet.com.kh

Website: Foreign Trade Bank