Cambodian PM says U.S. bank failures not affect kingdom's banking industry

PHNOM PENH, March 16 (Xinhua) -- Cambodian Prime Minister Samdech Techo Hun Sen said Thursday that the recent fall of Silicon Valley Bank and Signature Bank in the United States would not affect the kingdom's banking and financial industry.

"I'd like to appeal to depositors not to panic over the collapse of U.S. banks," Hun Sen said in a speech during a graduation ceremony of some 4,500 students at the Build Bright University in Phnom Penh.

He said if depositors unnecessarily panic and withdraw their fixed-term deposits before the date of maturity arrives, they will lose their interest income.

"I urge people to trust our capacity in supervising the banking and financial sector," Hun Sen said. "Our banks have enough reserve capital to deal with any financial risks."

The Southeast Asian nation currently has 58 commercial banks, nine specialized banks, and 86 microfinance institutions, according to the National Bank of Cambodia (NBC).

As of 2022, the country's banks and financial institutions had received a total deposit of 45 billion U.S. dollars, a year-on-year increase of 15.3 percent, and released a total loan of 56 billion U.S. dollars, up 21.7 percent year-on-year, the NBC said.