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Consumer Loans in Cambodia: Implications on Banking Stability

Author

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  • Meng, Channarith

Abstract

This paper analyzes the fast development of consumer loans including housing loans in Cambodia to check whether or not such a development posts any stability risk to banking system in Cambodia. Using stress-testing method, the paper finds that current level of consumer loans provided by banks does yet creates a big threat to the banking stability in Cambodia. Rather, the surge reflects consequences of positive development in the banking system and economy as a whole, including the rise of middle-income class, changing family structure, stronger competition among banks, and more widespread financial literacy.

Suggested Citation

  • Meng, Channarith, 2014. "Consumer Loans in Cambodia: Implications on Banking Stability," MPRA Paper 54131, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:54131
    as

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    File URL: https://mpra.ub.uni-muenchen.de/54131/1/MPRA_paper_54131.pdf
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    References listed on IDEAS

    as
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    Keywords

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    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G01 - Financial Economics - - General - - - Financial Crises
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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