NBC: Liquidation of 3 Banks Poses No Threat to Cambodia's Financial Stability

PHNOM PENH, Aug 4, 2026 (KPT) — Cambodia’s central bank said Monday the liquidation of three commercial banks poses no risk to the country’s financial stability, as the institutions together accounted for just 0.5 percent of total assets, deposits and loans. The National Bank of Cambodia (NBC) revoked the licenses of CCU Commercial Bank, Heng Feng (Cambodia) Bank and HH (Cambodia) Bank for non‑compliance with banking regulations and placed them into liquidation. NBC said the three banks had limited participation in the economy and had been weakened by adverse conditions in recent years. Official data showed their combined market share represented only 0.5 percent of the banking system. Even when added to two other banks previously liquidated, the total share amounts to about 1 percent of the sector. “The liquidation of non‑compliant banking and financial institutions is a normal supervisory function of the central bank aimed at maintaining the stability, transparency and reputation of the overall banking system,” NBC said. The central bank noted that liquidation procedures have been applied since the 1990s as part of prudential supervision, strengthening resilience over time. It said the three banks had struggled to recover from prolonged challenges since 2019, including the COVID‑19 pandemic, unfavorable economic conditions and reputational issues linked to public perceptions of illegal activities. To safeguard depositors, NBC appointed Reachs & Partners to liquidate CCU Commercial Bank, while Baker Tilly (Cambodia) will oversee Heng Feng and HH. Depositors have been advised to submit claims through the liquidators under the Law on Banking and Financial Institutions, while borrowers must continue repaying loans under existing contracts. NBC said it will work with relevant authorities to monitor the liquidation process to protect depositors and preserve confidence in Cambodia’s banking system.