PHNOM PENH — Cambodia’s small business lending sector maintained a trajectory of moderate growth in early 2026, reaching a total outstanding balance of $37.44 billion. According to the latest report from Credit Bureau Cambodia (CBC) released on May 7, the sector saw a 0.9% increase in loan balances during the first quarter, even as the market showed signs of consolidation.
Market Dynamics: Working Capital and Agriculture
The report highlights that while the total number of loan accounts dipped slightly by 1.5% to 1.74 million, the volume of capital being injected into the economy remains substantial.
- Dominance of Working Capital: Loans for daily operations continue to be the primary driver, accounting for 64.6% of all outstanding balances.
- Agricultural Support: Farming and agribusiness loans remain a critical pillar, representing 28.2% of all loan accounts nationwide.
Monitoring Credit Quality
Despite the growth in volume, the report flagged a rise in the 90+ Days Past Due (DPD) ratio, which climbed to 7.7% from 7.1% in the previous quarter. This uptick in overdue loans has put a spotlight on the National Bank of Cambodia’s (NBC) proactive supervisory measures.
H.E. Dr. Chea Serey, Governor of the NBC, recently reinforced that the resilience of the banking system is no accident. She attributed this stability to years of rigorous prudential regulations, including:
- Capital Adequacy Requirements: Ensuring banks hold enough capital to weather economic shocks.
- Forward-Looking Supervision: Shifting toward identifying risks before they materialize.
- Risk-Based Oversight: Strengthening on-site inspections to safeguard the deposits of the public.
The Analyst’s View: Quality Over Quantity
Ms. Sreyneath Meas, a regional market and policy analyst at the Royal University of Phnom Penh (RUPP), suggests that the current slowdown in account numbers may actually be a healthy sign.
“The 1.5% decline in account numbers, paired with a rise in total balance, suggests that lenders are becoming more selective, focusing on larger, more viable businesses. While the rise in the 90+ DPD ratio to 7.7% bears watching, it remains manageable thanks to the NBC’s stringent liquidity standards. For 2026, the focus for Cambodian banks isn’t just about lending more; it’s about lending smarter, especially as they begin to align with the new Sustainable Finance Taxonomy,” Ms. Meas analyzed.
FAQ: Small Business Lending 2026
Q: Why are “Working Capital” loans so dominant in Cambodia? A: Small businesses often face fluctuating cash flows. Working capital loans allow them to buy inventory, pay staff, and bridge the gap between sales and expenses, making them the most essential tool for SME survival.
Q: Does the 7.7% overdue ratio mean the banking sector is in trouble? A: No. While it is an increase, the NBC has high capital buffers and liquidity requirements in place. The central bank’s “Forward-Looking” approach is designed to manage these risks and prevent them from affecting overall financial stability.
Q: How does this report affect someone looking for a new business loan? A: Banks are likely to be more thorough in their risk assessments. Businesses with strong financial records and those aligning with “Green” or “Sustainable” practices (as per the new Taxonomy) may find more favorable terms.