Cambodia is continuing to place an emphasis on accounting practices as the country seeks to keep up with a rapidly developing banking system.
Speaking this month in front of almost 500 professors, experts, and students in a forum called “Work In The Banking Sector”, organised by the CamEd Business School, Chea Chanto, National Bank of Cambodia (NBC) governor, said, “Accounting skills help strengthen the economic development by empowering international commercials through international standard practice, making it possible for information to be compared, encouraging the flow of capital into the country and increasing tax money, which is the biggest source of income for the government.”
Chanto explained that “skilled accountants are priceless for enterprises. They are trained to face challenges by using good methods, based on practicality and direction of the problems. This is very valuable for leaders in creating strategies, feedbacks, reducing original cost and risks.”
“Financial reports are the keys to increasing transparency to aid local and foreign investors. It creates a strong investing environment and trust from investors, which helps strengthen financial stability; a key factor in building trust on every sector in Cambodia from the public,” he continued.
When asked about the slower pace of loan lending in 2016, Chanto said the banks act to suit the demands of the market.
“The market is never full, but it goes through stages,” he said.
“The national bank is the central bank, so we have to remain very cautious to build trust for [other financial sectors]. We can neither react to nor encourage them.”
He added, “Right now, the banking sector in Cambodia has developed noticeably and it has played an important role in supporting the economic growth and social development.”
“The banking system has developed tremendously in Cambodia. We can see that more and more people are knowledgeable in the field. They know how to save money. They no longer keep their money under the pillows or use the money to buy gold. They have turned to saving accounts.”
Chanto cited a recent NBC statistic which found that about 54 percent of Cambodian adults presently use banking services.
“This is a vital indicator of our people’s livelihood,” Chanto said. “In the near future, I believe that everyone will have their own bank account and even use the ATM because there are ATMs all over the country.”
Chanto explained that because the banking sector and MFIs are rapidly developing, “The NBC always meets and discusses with partners, banks, and MFIs in any given time to find solutions to challenges and problems regarding interests.”
He added, “We see a decrease in interests in the market due to three factors. First, the general infrastructure is getting better. Two, the security. And thirdly, our human resources are getting educated. They know how to note down and even analyze their credits, which lowers the risks as well.”