Cambodia's financial system

Cambodia's financial system is segmented, not fully developed, and subject to government influence. The system has gradually improved its efficiency as a result of some privatization and consolidation since 2000. All 12 commercial banks are privately owned following the 46 percent sale of the Foreign Trade Bank of Cambodia to foreign investors, though the government still has a stake in specialized banking. The banking sector is market-oriented, and banks are well capitalized. Foreign presence in the sector has been growing and there are now three foreign bank branches and two foreign representative offices in Cambodia. Credit is allocated on market terms, but the government exercises influence over lending decisions. There is no stock market, but the government has announced plans to launch a stock exchange by 2009. The National Bank of Cambodia, which used to operate as a commercial bank as well as the central bank, is now solely a regulatory and supervisory agency.