Connect with us

Economy

NBC Introduces Emergency Liquidity Facility to Safeguard Financial Stability

Published

on

PHNOM PENH, March 23, 2026 (KPT) — The National Bank of Cambodia (NBC) has unveiled an emergency liquidity facility to support banks and financial institutions facing short-term cash shortages, aiming to safeguard financial stability and bolster depositor confidence.

The measure, announced on March 20, comes as authorities seek to reassure the public following recent developments involving bank resolutions and depositor repayments.

National Bank of Cambodia

Under the new mechanism, the NBC will act as a “lender of last resort,” providing temporary liquidity assistance to deposit-taking institutions experiencing cash flow difficulties. Strict eligibility criteria apply: institutions must maintain capital levels at or above regulatory minimums for the past six months and demonstrate the ability to sustain those levels for the next three months.

Applicants must also show financial viability, with a record of profitability over the past three years, and provide sufficient collateral free of encumbrances as defined by NBC regulations.

The central bank stressed that emergency support will only be extended once institutions have exhausted other short-term funding sources, including interbank markets, internal funds or existing NBC facilities. Subsidiaries or branches of foreign banks must first seek support from parent companies or shareholders before applying.

NBC officials said the facility underscores the bank’s commitment to maintaining stability in Cambodia’s financial system, while retaining full discretion to approve requests based on case-by-case assessments.

Trending