Cambodia’s bad-loan ratio rose to 9.6% — but the net figure was 3.3%

What the first-half figures show

Cambodia’s banking system ended the first half of 2026 with a gross non-performing loan ratio of 9.6%, according to figures attributed to the National Bank of Cambodia. The net NPL ratio, after taking loan-loss provisions into account, was substantially lower at 3.3%.

Those two figures measure different layers of the same problem. The gross ratio captures loans already classified as non-performing before provisions reduce the bank’s exposure to expected losses. The net ratio reflects the remaining problem exposure after those provisions are recognised. A wide gap between the two therefore does not erase the bad loans; it shows that banks have set aside buffers against a meaningful share of the potential losses.

The rest of the balance-sheet data also matters. Outstanding loans increased 4.6% year on year to KHR 256.7 trillion, about US$64.2 billion, while customer deposits rose 4.4% to KHR 257.4 trillion, about US$64.4 billion. Total assets across the banking and financial system reached KHR 399.3 trillion, or roughly US$99.8 billion.

That combination is more informative than either the NPL ratio or deposit growth on its own. Banks were still lending and deposits were still expanding, but loan quality remained under pressure.

Why loan quality has been under strain

The 9.6% ratio does not prove a single cause. Before the first-half figures were released, the World Bank had already highlighted prolonged weakness in Cambodia’s property and construction sectors, softer credit demand and greater caution among lenders. Its June 2026 Cambodia Economic Update also noted that NPLs had risen in 2025 and expected asset-quality pressure to continue after the main regulatory forbearance measure expired in December 2025.

Cambodia’s central bank also reported that 239,546 loan accounts worth about US$4.8 billion had been restructured, equivalent to 7.5% of the loan portfolio. Restructuring is not the same as default: banks can change repayment terms before a loan becomes fully non-performing. Even so, the scale is a useful indication that a significant group of borrowers needed relief from their original repayment schedules.

This is why provisions matter in the NBC’s assessment. A provision is a buffer booked against expected credit losses, so a higher level of provisioning can reduce the loss exposure left on a bank’s balance sheet. It does not cure the underlying loan or guarantee recovery. If asset quality weakens further, banks may still need additional restructuring, collections work or provisions.

What it means for depositors and borrowers

For a foreign resident, property buyer or business owner using Cambodian banks, a 9.6% system-wide gross NPL ratio is a reason to distinguish between sector data and the condition of a specific institution. The national average does not tell you a particular bank’s capital position, liquidity, provisioning or loan-book quality.

For borrowers, weaker asset quality can make lenders more selective about new credit, collateral and repayment capacity. The first-half data do not show that every bank has tightened its rules, however, and they cannot predict the outcome of an individual application.

Property buyers and investors should also avoid reading the banking number as a direct forecast for real estate. Property-sector stress is part of the wider backdrop to credit quality, but a national NPL ratio does not establish the value of a specific development, the solvency of a particular developer or the direction of apartment prices.

The figures are also a first-half 2026 snapshot, not automatically the latest ratio on any later date. Anyone making a large deposit or credit decision should use the most recent disclosures for the institution involved and current regulatory information rather than treating the H1 system average as a live reading for every bank.