Dozens of customers stormed the Asia-Pacific Development Bank's headquarters after services were suspended and withdrawals were restricted, sparking panic in the financial system. While experts say it's not a systemic crisis, they warn that confidence is at a vulnerable point.
On April 7, 2569 at 04.00:XNUMX p.m., Nikkei Asia reported that Dozens of customers of Asia-Pacific Development Bank (APD) flocked to its headquarters in Phnom Penh on March 16 after the bank announced it would suspend services and limit withdrawals, allowing only $300 in transfers per day. This caused panic among depositors.
Previously, the bank had announced a temporary 5-day service suspension for maintenance. However, after the suspension expired, services were still not functioning normally, causing many customers to rush to withdraw money but being unable to enter the bank and unable to withdraw their full amount through both branches and ATMs.
One depositor revealed that she had about $1,000 that was needed for household expenses. Although she was eventually able to withdraw the money gradually within four days, this incident left her uncertain and unwilling to deposit money with the bank again.
Following the incident, other banks in Cambodia, such as Phillip Bank, Canadia Bank, and LOLC Cambodia, issued statements confirming their financial stability and denying rumors circulating on social media. Meanwhile, the Financial Industry Association stated that the information disseminated did not reflect the overall picture of the system.
The ASEAN+3 Macroeconomic Research Office assessed that the incident was not a systemic risk, but rather a result of shaken public confidence.
Analysts point out that this incident reflects concerns about the strength of Cambodia's banking sector, which is facing pressure from several sources, including domestic and international economic risks, the impact of COVID-19 relief measures, export tariffs to the United States, border conflicts with Thailand, and the slowdown in tourism, as well as problems with scam centers and the global energy price crisis.
Data from the National Bank of Cambodia indicates that the non-performing loan (NPL) rate is projected to rise to 8.3% in 2025 from 7.1% in 2024 and 2.1% in 2020, representing an increase of over 300% in five years. Some banks have exceptionally high NPL rates, such as Prince Bank (28%), Hattha Bank (35.6%), and Phillip Bank (17.2%). While the overall system maintains a strong capital ratio (CAR 22%), deteriorating asset quality poses a significant risk.
Cambodia is one of the few ASEAN countries without a deposit insurance system, making public confidence more fragile. The Central Bank of Cambodia (NBC) had to clarify that the APD (Affected Pension Fund) incident was a sudden run on deposits and did not reflect a systemic problem. They also announced increased monitoring of the situation and the implementation of countermeasures, such as establishing an Asset Management Company (AMC) to allow the central bank to act as the last lender.
Although experts view this as just a few isolated cases and not a systemic crisis, they warn that if the problem of bad debts and confidence are not addressed urgently, a repeat of the bank run could occur.
One depositor said that: "My confidence in the banking system is practically zero right now."
refer : asia.nikkei.com
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