S&P Global Ratings has warned that Cambodia’s banking industry remains under significant strain following the collapse of two minor lenders and a surge in deposit withdrawals. In an April 2026 report, the agency noted that these failures reveal systemic weaknesses and a precarious level of public trust. Specifically, Prince Bank entered liquidation via the National Bank of Cambodia (NBC) in January, while Asia-Pacific Development Bank (APD Bank) faced mass withdrawal demands in March after service disruptions.
S&P cautioned that while the recent bank runs were localized, overall depositor confidence is likely to remain shaken. The agency further noted that the exit of these small institutions will do little to strengthen the sector due to their minor market share, though larger, rated banks may see an influx of customers seeking stability.
To mitigate these risks, regulators have launched an Emergency Liquidity Assistance Facility. However, S&P highlighted that resources remain limited, particularly within Cambodia’s dollarized economy. The report concluded that the speed and efficiency of current liquidation processes, starting with Prince Bank, will be vital to rebuilding financial stability.
Click here for more on Banking
