Cambodia Banking Sector Jitters Resurface as APD Bank's Restrictions Persist

Jitters in Cambodia’s banking sector have persisted after customers of Asia-Pacific Development Bank (APD) said withdrawal limits remain in place months after the bank imposed restrictions on customer accounts. The issue resurfaced this week after a prominent business influencer said on social media that the bank’s prolonged $500 daily withdrawal limit had disrupted her business operations. APD imposed restrictions in March, limiting daily cash withdrawals and transfers to $300 while suspending Visa and digital payment services for five days because of what it described as “system maintenance.” The restrictions came amid broader concerns about Cambodia’s banking sector following the liquidation of several banks facing scrutiny over alleged links to businessmen connected to online scam operations. Hundreds of depositors queued outside an APD branch at the time in an attempt to withdraw their money. Although APD later raised the daily withdrawal limit to $500 and has repeatedly said it would continue updating customers, it has not said when the restrictions will be lifted. The National Bank of Cambodia’s (NBC) governor, Chea Serey, issued a statement during the March bank run urging customers to remain patient, though she did not identify APD by name. One APD customer, who requested anonymity because of security concerns, said the withdrawal limits had prevented him from paying hospital bills. He said he had hired a lawyer to help recover his deposits and close his account, but had been unsuccessful and planned to file a request with the central bank. Another customer, who also requested anonymity for security reasons, said he had retained a lawyer to pursue legal action after waiting months for the bank to resolve the issue. “I can only withdraw $500 per day, and the bank has not told us what action it is taking or what solution it can offer,” he said. APD and NBC did not immediately respond to requests for comment. Sok Chan, spokesperson for the Association of Banks in Cambodia, of which APD is a member, also did not respond before publication. According to its 2024 annual report, APD held more than $1 billion in customer deposits. Its chairman, Wang Dong, who obtained Cambodian citizenship in 2015 and took the name Vong Pech, owns a 99% stake in the bank, an ownership structure that industry experts have described as unusual. Cambodia remains the one of the only ASEAN countries without a national insurance scheme to protect depositors. International financial institutions and NBC have spent more than a decade discussing such a program, which officials have also said could encourage greater use of the Khmer riel.