A deposit insurance scheme is deemed as needed in Cambodia, which is the only country in ASEAN with the exception of Myanmar that has yet to implement such a scheme.
The debate over a deposit insurance scheme arose following a proposal put forward at a recent banking conference organised by the National Bank of Cambodia (NBC), the Kingdom’s central bank.
The proposal is for the deposit insurance fund to be administered by a legally separate entity within the central bank that would step in to pay depositors in the event of a bank’s collapse, reported the Phnom Penh Post.
Participation in the scheme would be mandatory for all licensed commercial banks and microfinance institutions in Cambodia, but the insurance would only cover riel deposits – furthering the central bank’s campaign to promote the use of the local currency.
NBC Director-General Chea Serey said that the central bank would review and consider the deposit insurance proposal.