Cambodia National Banking Laws
(last updated May 13th, 2010)
According to the Law on the Organization and Conduct of the National Bank of Cambodia made on January 26, 1996, the National Bank of Cambodia (NBC) is the “Central Bank” which is an autonomous public entity of a commercial and industrial nature. The Central Bank’s Head Office is situated in Phnom Penh Capital of the Kingdom of Cambodia. The Central Bank may establish branches and agencies throughout the country and also set up representative offices in other countries after obtaining the approval of its Board of Directors.
Under the article 7 of the Bank Law, the Central Bank shall have the following functions and duties:
- To determine monetary policy objectives, in consultation with the Royal Government and consideration of the framework of the economic and financial policy of the Kingdom
- To formulate, implement and monitor monetary and exchange policies aimed at the determined objectives
- To conduct regular economic and monetary analysis, make public the results, and submit proposals and measures to the Royal Government
- To license, delicence, regulate and supervise banks and financial institutions and other relevant establishments such as auditors and liquidators
- To oversee payments systems in the Kingdom, and to enhance interbank payments
- To act as the sole issuer of national currency of the Kingdom
- To undertake and perform, in the name of the Kingdom, transactions resulting from the participation of the Kingdom in public international institutions in the banking, credit, and monetary spheres
- To establish the balance of payments
- To participate in the management of external debt and claims
- To participate in the formation and supervision of the money and financial markets
- To licence, delicence, regulate and supervise all those operating in the securities and foreign exchange markets, the market for precious stones and precious metals
- To set interest rates.
At the present time, Cambodia’s banking sector is playing an important role in contributing to the economic development. As a result, in recent years the banking and financial sector have developed rapidly. It shows that there is the increase in the public confidence in Cambodia’s banking and financial sectors.
News Facts (http://www.oracle.com/us/corporate/press/071959)
- May 8, 2009 — Banking on an economic crisis (0)
- February 23, 2009 — National Bank of Cambodia denies banking instability (0)
- January 28, 2009 — Commercial bank VIP closed before operating any business (0)
- September 22, 2009 — Central bank to sell dollars to make riel value stable (0)
- September 15, 2009 — Mid-size lenders ask NBC to defer capital requirements (0)
- September 8, 2009 — Bad Loans on the Rise, Central Bank Warns (0)
- July 27, 2009 — Malaysian commercial bank opens its first branch (0)
- July 25, 2009 — Vietnam bank to open in Phnom Penh (0)
- July 7, 2009 — Bank deposits climb in first half (0)
- June 25, 2009 — National revenue and expenditure handled by commercial bank (0)
Sources:National Bank of Cambodia http://www.nbc.org.kh/legislations.asp Khmerian. The Central Bank’s general functions and duties Cambodia’s Banking Sector
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