dear all this is the chapter of banking system in cambodia

1. CHAPTER VII
BANKING SYSTEM IN
CAMBODIA

2. Macroeconomic and Financial
System Development in Cambodia
BY MR. NGUON MENGSONG

3. 1. Macro Economic
Performance

4. 9.1
6.4
5.4 5.6
5.0
11.9
8.8
8.0
6.5
8.5
10.3
13.3
10.8
10.2
6.7
0.1
6.0
7.1 7.3 7.5 7.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
1994r
1995r
1996r
1997r
1998r
1999r
2000r
2001r
2002r
2003r
2004r
2005r
2006r
2007r
2008r
2009r
2010r
2011r
2012r
2013p
2014p
% Real GDP Growth
Macro-Economic Development
Real GDP Growth

5. Macro-Economic Development
Real GDP Growth

6. EXTERNAL FACTOR
 The external risk during the last quarter of
2014 remained slightly high as capital flows
in the region remain uncertain.

7. EXTERNAL FACTOR
219
254
254
269
308
353
413
302 305
356
409
508
407 396
423
446
439
528
458 404
460
414
399
0
100
200
300
400
500
600
Q2-09
Q3-09
Q4-09
Q1-10
Q2-10
Q3-10
Q4-10
Q1-11
Q2-11
Q3-11
Q4-11
Q1-12
Q2-12
Q3-12
Q4-12
Q1-13
Q2-13
Q3-13
Q4-13
Q1-14
Q2-14
Q3-14
Q4-14
Foreign Direct Investment
(flow in MUSD)
Total foreign direct investments (flow) Banks Non banks
• After a slowdown during the last quarter of 2013 and first quarter
of 2014 due to political and labor unrest following the national
election, the trend of FDIs changed only during the second
quarter of 2014. Following that, FDIs started to decline again in the
third and fourth quarters of 2014.

8. EXTERNAL FACTOR
• The higher and more stable profitability of Cambodia’s organic rice
market might have a positive impact on Cambodia’s exports.
• However, the minimum wage negotiations that occurred in July 2014
might trigger the uncertainty in the future growth and stability of
garment sector as garment export mainly depends on the buyers’
-16.5
1.0
-6.5
34.4
31.1
39.5
40.5
21.5
35.3
21.3
23.9
6.9
9.6
9.4
13.9
21.2
13.0
16.4
23.1
13.8
7.8
10.7
77
83
79 79
69
81 79 77 75
81
78 77 75 77
73 75 74
80
72 73 71 74
70
-30
-10
10
30
50
70
90
0
10
20
30
40
50
60
70
80
90
Q2-09
Q3-09
Q4-09
Q1-10
Q2-10
Q3-10
Q4-10
Q1-11
Q2-11
Q3-11
Q4-11
Q1-12
Q2-12
Q3-12
Q4-12
Q1-13
Q2-13
Q3-13
Q4-13
Q1-14
Q2-14
Q3-14
Q4-14
% %
Exports
Total exports ( growth rate on yearly basis in %) Garments exports (percent of exports)

9. EXTERNAL FACTOR
• The decline in total imports, together with the rise in export
growth, has helped to narrow the current account deficit.
-9.0
-1.7
-4.3
-4.0 -4.0
-7.8
-2.0
-6.9
-11.4
1.5
-3.3
-0.4
-13.9
-8.4
-7.5
-14.0
-15.6
-6.1
-14.9
-0.7
-11.0
-14.8
-13.1
-18
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
Q2-09
Q3-09
Q4-09
Q1-10
Q2-10
Q3-10
Q4-10
Q1-11
Q2-11
Q3-11
Q4-11
Q1-12
Q2-12
Q3-12
Q4-12
Q1-13
Q2-13
Q3-13
Q4-13
Q1-14
Q2-14
Q3-14
Q4-14
Current account balance
(percentage of GDP)

10. EXTERNAL FACTOR
• The ratio of Reserves to Total Imports has been higher than that
in the previous quarter. The Reserves can now cover up to 4.6
months of the country’s imports.
1.9
2.0
2.4
2.4
2.5
2.5
2.7
2.8
2.9
2.9
3.0
3.3
3.2
3.4
3.5
3.7
3.6
3.5
3.6
3.7
3.9
4.2
4.4
4.5
5.8 5.9
4.6
5.4
4.7
5.5
4.6
4.9
4.5
4.1
4.7
4.4 4.6
.0
.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
0
1
2
3
4
5
6
7
Q2-09
Q3-09
Q4-09
Q1-10
Q2-10
Q3-10
Q4-10
Q1-11
Q2-11
Q3-11
Q4-11
Q1-12
Q2-12
Q3-12
Q4-12
Q1-13
Q2-13
Q3-13
Q4-13
Q1-14
Q2-14
Q3-14
Q4-14
Month of import Billion USD
Gross International Reserve
Gross official reserve(bn usd) Reserves to total imports

11. EXTERNAL FACTOR
• In short, the gradual recovery of the global
environment, particularly in the US, and the more
favorable growth prospects in regional economies
are somehow favorable to the Cambodian
banking system.
• Nevertheless, the substantial part of foreign
Cambodian banks’ funding still expose them to
external risks, particularly those that would result
from a potential decline of resources provided by
foreign institutions due to interest rates’ arbitrage
opportunities.

12. EXCHANGE RATE
 In the fourth quarter of 2014, the exchange rate
KHR/USD remained stable.
4182
4181
4245
4004
4122
3995
4100
3983
4085
4003
4087
4064
3800
3850
3900
3950
4000
4050
4100
4150
4200
4250
4300
Q2-09
Q3-09
Q4-09
Q1-10
Q2-10
Q3-10
Q4-10
Q1-11
Q2-11
Q3-11
Q4-11
Q1-12
Q2-12
Q3-12
Q4-12
Q1-13
Q2-13
Q3-13
Q4-13
Q1-14
Q2-14
Q3-14
Q4-14
Exchange rate KHR/USD
(end of quarter Market rate)

13. Exchange Rate
3900
3950
4000
4050
4100
4150
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Exchange Rate Movement of Riel against USD
(2011,2012,2013,2014)
BID MKR
2015
BID MKR
2014
BID MKR
2013

14. INFLATION RATE
 The yearly inflation rate in 2014 was managed at
1.15% lower than expected.
-4.9
-2.3
5.3
6.7
1.9
3.8
7.1
6.7
4.9
5.4
1.8
1.4
2.5
1.0
2.9
3.7
4.6 5.0
4.9
3.6
1.2
-6.0
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
Q2-09
Q3-09
Q4-09
Q1-10
Q2-10
Q3-10
Q4-10
Q1-11
Q2-11
Q3-11
Q4-11
Q1-12
Q2-12
Q3-12
Q4-12
Q1-13
Q2-13
Q3-13
Q4-13
Q1-14
Q2-14
Q3-14
Q4-14
Consumer price index
( YoY)

15. Inflation
3.3
3.8 3.8
5.2
6.5
7.1 7.1
6.4
6.7
5.3
5.7
4.9
5.8
5.4 5.4
4.8
2.2
1.8
1.3
2.2
1.4
1.2
1.6
2.5
1.8 1.7
1.0 1.0
2.8 2.9
4.0
3.3
3.7
4.2 4.1
4.7
4.6
4.3 5.0
4.9
4.6
4.9
4.3
4.1
3.6
2.9
2.4
1.2
0
1
2
3
4
5
6
7
8
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Inflation Year on Year
Based year: 2006
Inflation Y-O-Y
2011
Inflation Y-O-Y
2012
Inflation Y-O-Y
2013

16. FINANCIAL DEEPENING
 Since the third quarter of 2013, the financial deepening
keeps on enlarging quite quickly with the same trend.
33
35
38
39 41 41 41 42
44 45 45 47
49 48
50
53 54
49
53
56
60
62 63
Q2-09
Q3-09
Q4-09
Q1-10
Q2-10
Q3-10
Q4-10
Q1-11
Q2-11
Q3-11
Q4-11
Q1-12
Q2-12
Q3-12
Q4-12
Q1-13
Q2-13
Q3-13
Q4-13
Q1-14
Q2-14
Q3-14
Q4-14
Financial deepening
(M2 in percentage of GDP)

17. Financial Deepening
8.5 9.3 9.5 10.1
12.6 13.0
17.2 18.0
20.2 19.5
23.3
32.3
28.3
37.7
41.4
45.4
50.4
53.0
63
0
10
20
30
40
50
60
70
Financial Deepening (M2/GDP), in %
%

18. 2. Banking Sector
Development

19. Cambodia Financial System
National Bank of
Cambodia
•Commercial Banks
•Specialized Banks
•Microfinance institutions
•Financial lease
Companies
•Payment system
•Money and interbank
market
Ministry of Economy
and Finance
•Insurance industry
•Casino
•Pension funds
•Real estate market
•Pawnshop
Securities and
Exchange
Commission of
Cambodia
•Capital market
•Future market

20. •Monetary Policy
•Supervisory Authority of Banking Sector:
Commercial Banks, Specialized Banks, MFIs,
Financial lease Com.
•Payment system
•Money and interbank market
• Fiscal Policy
•Supervisor Authority of Insurance,
casinos, Real estate Developer, and
pawnshop
- Regulator and Supervisor of
securities
markets.
Regulatory Authorities in Cambodian Financial System
1. Cambodia Financial System

21. The Banking System in Cambodia
December 2014
National Bank of Cambodia
36- Commercial
Banks
13- Locally
Incorporated
11- Foreign Branch
Banks
11-Specialized
Banks
1- State-owned
Banks
10- Local
Banks
MFIs
7-MDIs
NGOs over 60
21NBC
Branches
FCB, KTB, BIPP, AGRI, BOC, Mega, ICBC, MB, SHB,TCB, BK
RDB
PHSME, FISB, ANCO,
ACSB, TSB,CKSB,CAM,CSB,OWSB,WING
38- Registered
Leasin
g
6-Licensed
12- Subsidiary Banks
FTB, ABA, CAB, CNB, CMB, VB, PLB
ACLEDA, BIDC, MJB, BKB, PCB, POST
CCB, CPB, ANZ, MYB, SKB,
KBC, RHB, CIMB, SACOM,
UCB, CUBC, HLB
32-Licensed

22. Banks and MFIs Branches and Electronic
Banking
December 2014
234
320 342 374 393 421 454 496 557
727
882
1,105
1,294
1,513
1,864
2,176 2,217
2,694
86
177
338
406
501
588
681
766
940
-
100
200
300
400
500
600
700
800
900
1,000
-
500
1,000
1,500
2,000
2,500
3,000
Number of Office (Banks) Number of Office (MFIs)
Number of ATM terminal
36,013
150,546
322,339
453,471
592,317
764,738
957,556
1,010,858
1,296,875
5,2794,953
9,146
10,576
14,003
18,491
18,198
24,412
31,261
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
Number of Debit card Number of Credit card
Descriptions 2012 2013 Dec-14 %r(2013-2014) %r(2012-2013)
1 Number of Bank branches** 454 497 557 12.1% 9.3%
2 Number of Licensed MFI branches* 2,176 2,217 2,694 21.5% 1.9%
3 Number of ATM terminal 681 766 940 22.7% 12.5%
4 Number of Debit card 957,556 1,010,858 1,296,875 28.3% 5.6%
5 Number of Credit card 18,198 24,412 31,261 28.1% 34.1%
6 WING is offering new mobile banking service in Cambodia to rural area
*Including head offices, Provinces & Districts Branch
**Including head office

23. Organizational Structure of Directorate General of
Banking Supervision
National Bank of
Cambodia
Directorate
General of Banking
Supervision
Legal
Department
Licensing
Department
Offsite
Supervision
Department
Onsite
Inspection
Department
1. Cambodia Financial System

24. On-going Operations
Prudential Limits
• Specific limits imposed on
financial institutions to
prevent them from
undertaking excessive risks
• Can be specific to certain
activities, counterparties,
sectors etc.
•Solvency ratio 15%
•Liquidity ratio 50%
•Reserve requirements: 8% KHR,
12.5%USD
•Large exposure limit : 10%
•Related parties limit : 10%
•Fixed asset ratio : 30%
•Asset classification
Governance Standards & Risk Management
• Regulations on sound governance and
internal control practices and fit and
proper requirements
• Generally includes oversight, roles of
BODs, business management and controls
and audit functions of institutions
• Regulations on good practices to ensure
sound and prudent credit policies and
risks are well-managed
• Generally, covers the prudential credit
policies, procedures, authorities,
documentations, and risk management
policies and procedures.
Capital Adequacy
• Minimum capital requirement
for risk exposures assumed by
institutions Prompt Corrective Actions and
Impose Disciplinary
Sanction
• Violation of laws and
regulations.
• Other recommendations
Commencement
Criteria for entry
• Ability to screen access to
ownership and
management
➢ fit and proper tests
➢ assessment of wider
group structure
• Minimum capital funds
• Reasonable business plans
and projections
• Consultations with home
supervisors
• Power to review (and
reject) transfer of
significant ownership or
controlling interests
Reporting and Disclosure
• Minimum reporting and
disclosure requirements to
promote transparency and
facilitate supervisory
surveillance.
Regulatory and supervisory framework

25. Licensing
covered
entities
Defining
and
enforcing
prudential
rules and
guidelines
Supervising
through
both offsite
and onsite
examination
Imposing
disciplinary
sanction
Referring to the
court if failure to
observe the laws
and regulations
undermines the
public interest
3. Regulatory and supervisory
framework
Regulatory and supervisory
framework

26. Transition to Risk Based Supervision
Risk Profile
Assessment
•CAMELS + Risk
Framework
•Surveillance on
Systemic Risk
•Stress Test Exercise
Supervisory Cycles
•12 Months Cycle for
Systemic Banks
•18 – 24 months
Cycle for Medium
and Small Banks
•Criteria for
Determining
Systemic Banks
depend on Nature
and Size of
Business,
Complexity and
Risk Profile, and its
Impact on
Financial System
Supervisory Program
•Offsite Inspection
•Onsite Examination
•Continues
Supervision
•Analysis
•Planning
•Monitoring and
onsite review
•Risk assessment
•Reporting and
intervention
•Follow up
Supervisory Actions
•Recommendations
•Prompt Corrective
Actions
•Disciplinary
sanction
•Reprimand
•Financial means
•Court order
•De-licensing
3. Regulatory and supervisory
framework
Regulatory and supervisory
framework

27. Supervisory
strategy and
planning
Pre-exam
On-site Visit Wrap up
meeting
Final report &
prompt
corrective
action
Follow up
Off-site
supervision
News and
other factors
Briefing
Finding consultation
with management
Onsite
Inspection
3. Regulatory and supervisory
framework
Regulatory and supervisory framework

28. Financial Sector Development Strategy 2011 – 2020
Banking Sector
Nonbanking
Financial Sector
Governance
and
Infrastructure
Capacity
Building
Strategic Action Plan for Supervision
Development
of a strategic
plan to help
achieve full
compliance
with the BCP
Effective
implementation
of risk based
supervision
Upgrading of
regulatory
framework
Cooperation
framework
Early warning
system, PCA,
and measures
for tackling
weak banks
3. Regulatory and supervisory
framework
Regulatory and supervisory framework

29. 3. Banking Sector
Performance

30. Savings Fixed Savings Fixed
% % % %
Deposits 1.18% 5.86%
Riels
Spread 10.42%
Loans
USD
4.23%
7.28%
11.51%
0.75%
16.28%
Weighted Average Interest Rate
In Percentage per Annum
MFIs as of December 2014
Banks as of December 2014
Savings Fixed Savings Fixed
% % % %
USD
4.81%
23.81%
28.62%
35.66%
Deposits 6.31%
Riels
Spread 29.35%
Loans

31. Cambodia: Key Banking Data Compared to GDP
(December 2014, in millions of USD)
2007 2008 2009 2010 2011 2012 2013 2014
Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec
Total number of all banks 24 30 33 35 35 39 43 44
Total Assets 3,358.76 4,164.78 4,996.49 6,387.31 7,945.27 10,905.09 12,748.11 16,202.47
Total Loans to Customers 1,563.75 2,387.63 2,510.60 3,240.89 4,326.41 5,845.87 7,351.78 9,344.94
Total Cusomers' Deposits 2,478.76 2,520.71 3,320.12 4,312.66 5,192.83 6,736.07 7,560.44 9,748.96
Total Assets (growth) 76.60% 24.00% 19.97% 27.84% 24.39% 37.25% 16.90% 27.10%
Total Loans (growth) 82.72% 52.69% 5.15% 29.09% 33.49% 35.12% 25.76% 27.11%
Total Deposits (growth) 76.83% 1.69% 31.71% 29.89% 20.41% 29.72% 12.24% 28.95%
Assets Percentage of GDP 38.37% 40.50% 48.38% 55.02% 61.63% 76.86% 82.78% 98.33%
Deposit Percentage of GDP 28.32% 24.51% 32.15% 37.15% 40.28% 47.48% 49.09% 59.16%
Loans Percentage of GDP 17.86% 23.22% 24.31% 27.92% 33.56% 41.20% 47.74% 56.71%
Loan-deposit ratio 63.09% 94.72% 75.62% 75.15% 83.32% 86.78% 97.24% 95.86%
Paid-up Capital to GDP 6.74% 5.74% 7.30% 8.87% 9.69% 10.84% 11.53% 11.67%
Exchange Rate 4,003 4,081 4,169 4,053 4,039 3,995 3,995 4,075

32. Total Assets Compared to GDP
December 2014
955
1,169
1,354
1,902
3,359
4,165
4,996
6,387
7,945
10,905
12,748
16,202
4,662
5,324
6,263
7,357
8,754
10,284
10,328
11,608
12,892
14,188
15,400
16,478
12%
22%
16%
40%
77%
24%
20%
28%
24%
37%
17%
27%
20%
22%
22%
26%
38% 40%
48%
55%
63%
77%
83%
98%
0%
20%
40%
60%
80%
100%
120%
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
In
Million
of
USD
Total assets GDPp Growth of total assets Total assets to GDP

33. Loans and Deposits
As of December 2014
662
826
955
1,402
2,479
2,521
3,220
4,313
5,193
6,736
7,560
9,749
335 450 571 882 1,583 2,388 2,511 3,241 4,326 5,846 7,352 9,345
50.7%
54.5%
59.8%
62.9% 63.9%
94.7%
78.0%
75.1%
83.3%
86.8%
97.2% 95.9%
0%
20%
40%
60%
80%
100%
120%
-
2,000
4,000
6,000
8,000
10,000
12,000
Millions
of
USD
Deposits Loans Loans to Deposits ratio

34. Interest Rate Trend in KHR
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Dec-14
Saving Deposit 1.90% 2.10% 1.80% 1.90% 2.10% 1.20% 1.20% 1.18% 1.12% 1.15% 1.18%
Fixed Deposits 6.30% 6.80% 6.40% 7.10% 7.70% 6.50% 6.60% 6.16% 5.88% 5.80% 5.86%
Loans 16.70% 18.60% 23.10% 22.30% 22.40% 23.10% 22.80% 19.35% 11.79% 15.87% 16.28%
2.4% 2.2% 1.9% 2.1% 1.8% 1.9% 2.1%
1.2% 1.2% 1.2% 1.1% 1.2% 1.2%
7.2% 7.0%
6.3% 6.8% 6.4%
7.1% 7.7%
6.5% 6.6% 6.2% 5.9% 5.8% 5.9%
0%
5%
10%
15%
20%
25%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Dec-14
Saving Deposits Fixed Deposits Loans

35. Interest Rate Trend in USD
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Dec-14
Saving Deposits 0.90% 1.10% 1.00% 1.00% 1.10% 0.70% 0.60% 0.63% 0.63% 0.71% 0.75%
Fixed Deposits 3.60% 3.90% 4.80% 4.90% 6.30% 5.30% 4.40% 4.29% 4.44% 4.27% 4.23%
Loans 18.80% 16.20% 16.70% 16.00% 15.80% 16.40% 17.20% 15.36% 11.61% 11.40% 11.51%
1.6% 1.4% 0.9% 1.1% 1.0% 1.0% 1.1% 0.7% 0.6% 0.6% 0.6% 0.7% 0.8%
4.2% 4.0% 3.6% 4.0%
4.8% 4.9%
6.3%
5.3%
4.4% 4.3% 4.4% 4.3% 4.2%
18.2%
17.3%
18.8%
16.2% 16.7%
16.0% 15.8%
16.4%
17.2%
15.4%
11.6% 11.4% 11.5%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Dec-14
Saving Deposits Fixed Deposits Loans

36. Deposit with Banks and MFIs
December 2014
826,369 963,263
1,401,783
2,478,759
2,520,710
3,320,116
4,312,663
5,192,833
6,736,070
7,560,441
9,748,964
2,005 1,944 2,939 6,063 5,411 9,505
40,467
113,759
273,871
437,973
888,490
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
In
Thousand
of
USD
Banks' deposits MFIs' deposits

37. Number of Banks and MFIs’ Depositors
December 2014
149,422
206,357
285,639
456,026
699,987
927,997
1,067,404
1,266,412
1,488,715
1,765,267
2,259,601
122,984 137,624 113,277
147,966
108,788 102,959 144,511
242,116
686,666
828,955
1,046,807
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Dec-14
Bank's depsitors MFIs' depsitors

38. Financial Institutions – Loans to Customers
December - 2014
482,712 603,542
882,288
1,582,783
2,387,632
2,510,603
3,240,885
4,326,412
5,845,865
7,351,777
9,344,937
40,846 48,252 91,973 160,275 277,036 298,626 425,572
641,561
885,830
1,317,084
2,016,966
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Thousand
of
USD
Banks - loans (gross) MFIs - Loans (gross)

39. Financial Institutions – Number of Borrowers
December 2014
123,937 145,161 164,931
197,337
230,114
262,952 286,346 294,533
353,606 385,421
443,482
322,056
366,107
471,026
624,089
825,652
871,412
978,077
1,141,913
1,301,680
1,550,616
1,774,815
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Dec-14
Banks - Borrowers MFIs - Borrowers

40. Banks – Credit Classified by Sectors
December 2014
Million of USD Dec-13 Dec-14 Growth rate Contributions in Growth
Retail Trade 1,109.26 1,435.80 29.4% 15.8%
Wholesale Trade 1,348.44 1,807.21 34.0% 22.3%
Hotels and Restaurants 462.94 545.98 17.9% 4.0%
Manufacturing 819.67 882.98 7.7% 3.1%
Other Non-Financial Services 752.91 863.72 14.7% 5.4%
Construction 577.37 775.28 34.3% 9.6%
Personal Lending 310.18 420.40 35.5% 5.3%
Agriculture, Forestry and Fishing 723.47 952.85 31.7% 11.1%
Real Estate Activities 250.53 379.42 51.4% 6.3%
Information Media and Telecommunications 117.34 73.49 -37.4% -2.1%
Owner-Occupied Housing only 398.94 602.50 51.0% 9.9%
Other Lending 197.40 197.02 -0.2% 0.0%
Financial Institutions 117.59 185.99 58.2% 3.3%
Utilities 47.84 84.60 76.8% 1.8%
Transport and Storage 97.43 126.22 29.5% 1.4%
Rental and Operational Leasing Activities 86.62 161.26 86.2% 3.6%
Credit Cards 11.86 13.02 9.7% 0.1%
Mining and Quarrying 39.57 23.23 -41.3% -0.8%
Total 7,469.37 9,530.98 27.6% 100.0%

41. Banks – Credit by Sectors Percentage of Gross
Exposure
December 2014
2010 2011 2012 2013 Dec-14
Retail Trade 17.9% 18.0% 15.6% 14.9% 15.1%
Wholesale Trade 17.5% 14.4% 17.6% 18.1% 19.0%
Hotels and Restaurants 9.7% 7.4% 6.0% 6.2% 5.7%
Manufacturing 8.7% 9.2% 9.3% 11.0% 9.3%
Other Non-Financial Services 9.9% 9.2% 10.0% 10.1% 9.1%
Construction 7.0% 7.4% 7.5% 7.7% 8.1%
Personal Lending 5.2% 4.9% 4.1% 4.2% 4.4%
Agriculture, Forestry and Fishing 6.7% 8.9% 9.6% 9.7% 10.0%
Real Estate Activities 4.6% 3.2% 3.1% 3.4% 4.0%
Information Media and Telecommunications 2.7% 3.0% 3.3% 1.6% 0.8%
Owner-Occupied Housing only 3.6% 6.2% 5.5% 5.3% 6.3%
Other Lending 1.3% 1.5% 1.3% 1.3% 2.1%
Financial Institutions 1.3% 1.8% 2.3% 1.6% 2.0%
Utilities 0.6% 1.2% 0.9% 0.6% 0.9%
Transport and Storage 1.9% 1.7% 2.0% 2.6% 1.3%
Rental and Operational Leasing Activities 0.7% 1.7% 1.3% 1.2% 1.7%
Credit Cards 0.2% 0.2% 0.2% 0.2% 0.1%
Mining and Quarrying 0.4% 0.1% 0.4% 0.5% 0.2%

42. Banks – Credit Classified by Sectors
December 2014
Retail Trade
15.1%
Wholesale Trade
19.0%
Hotels and
Restaurants
5.7%
Manufacturing
9.3%
Other Non-Financial
Services
9.1%
Construction
8.1%
Personal Lending
4.4%
Agriculture,
Forestry and
Fishing
10.0%
Real Estate Activities
4.0%
Information Media and
Telecommunications
0.8%
Owner-
Occupied
Housing only
6.3% Other
Lending
2.1%
Financial Institutions
2.0%
Utilities
0.9%
Transport and Storage
1.3%
Rental and Operational
Leasing Activities
1.7%
Credit Cards
0.1% Mining and Quarrying
0.2%
Gross Loan

43. Banks – NPL Ratio Classified by Sectors
December 2014
0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
Retail Trade
Wholesale Trade
Hotels and Restaurants
Manufacturing
Other Non-Financial Services
Construction
Personal Lending
Agriculture, Forestry and Fishing
Real Estate Activities
Information Media and Telecommunications
Owner-Occupied Housing only
Other Lending
Financial Institutions
Utilities
Transport and Storage
Rental and Operational Leasing Activities
Credit Cards
Mining and Quarrying
1.6%
1.1%
3.6%
2.1%
1.9%
1.3%
1.6%
3.9%
8.3%
0.0%
0.8%
1.1%
1.4%
1.5%
3.5%
1.6%
2.6%
23.7%
NPL Ratio Classified by Sectors

44. Market share of NPL Classified by Sectors
December 2014
Retail Trade
11.3%
Wholesale Trade
9.9%
Hotels and Restaurants
9.4%
Manufacturing
9.1%
Other Non-Financial Services
8.0%
Construction
4.8%
Personal Lending
3.3%
Agriculture, Forestry and
Fishing
17.9%
Real Estate Activities
15.1%
Information Media and
Telecommunications
0.0%
Owner-Occupied
Housing only
2.2%
Other
Lending
1.0%
Financial Institutions
1.2%
Utilities
0.6%
Transport and Storage
2.1%
Rental and Operational
Leasing Activities
1.2%
Credit Cards
0.2%
Mining and Quarrying
2.7%
NPLS

45. Banks – Credit to Agriculture Sectors
December 2014
16.9
36.7
76.3
119.8
162.5
208.5
375.3
559.2
708.9
952.9
28.5
45.8
67.9
120.4
127.8
177.7
264.1
349.3
500.1
745.7
-
200
400
600
800
1,000
1,200
Million
USD
Banks MFIs

46. Microfinance – Credit Classified by
Sectors,
December 2014
Agriculture
37%
Trade and Commerce
21%
Services
10%
Transportation
4%
Construction
5%
Household
22%
Others
1%

47. Trend of Credit & Deposit % of
GDP
December 2014
7.4% 6.2% 6.5% 7.3% 8.5% 9.3%
11.6%
17.9%
23.2% 24.3%
27.9%
33.6%
41.2%
47.7%
56.7%
11.0% 11.5%
13.3% 14.4% 15.1% 14.6%
19.1%
28.3%
24.5%
32.2%
37.2%
40.3%
47.5%
49.1%
59.2%
0%
10%
20%
30%
40%
50%
60%
70%
Credit Deposit

48. Banks – Capital Adequacy Ratio &
Liquidity
December 2014
34.5% 31.9%
26.5%
23.6%
27.6%
32.3% 31.4%
26.2% 25.0% 24.8%
21.5%
117.0% 118.0%
108.0%
104.2%
81.3%
90.6% 90.6%
82.8% 82.2%
78.3% 80.0%
0%
20%
40%
60%
80%
100%
120%
140%
Solvency ratio Liquidity Ratio

49. Banks – Prudential Ratios
December 2014
14.63%
12.76%
9.64%
7.26%
9.87%
3.44% 3.68%
4.37%
3.05%
2.43% 2.45% 2.70% 2.22%
19.18%
21.68%
18.69%
16.82%
1.17% 1.18% 1.71% 1.29% 1.75% 1.38% 1.54% 1.53%
3.33%
-5%
0%
5%
10%
15%
20%
25%
NPL ratio Loan to related party ratio

50. Banks Earning Trend
December 2014
33.64%
26.95%
24.16%
21.00%
22.37%
20.05%
17.03%
21.96%
22.27%
21.80%
20.94%
19.57%
20.24%
18.44%
66.36%
73.05%
75.84%
79.00%
77.63%
79.95%
82.97%
78.04%
77.73%
78.20%
79.06%
80.43%
79.76%
81.56%
0.58%
1.06% 0.93% 1.20%
1.76%
2.84% 2.83% 2.88%
1.25% 1.44%
1.89% 1.92% 1.92% 1.92%
1.73%
3.92%
3.83%
5.73%
7.87%
14.18%
16.58%
13.11%
5.63%
6.63%
9.02%
9.80%
9.47%
10.43%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Return on Assets and Return on Equity
(Annualized)
Equity to total assets Debt to total assets Return on Assets Return on Equity

51. MFIs – Prudential Ratios
December 2014
(Annualized ROA & ROE)
55.19%
43.96%
20.42% 20.35%
24.02%
22.25% 21.25% 20.94% 19.91% 18.99%
5.46% 5.26% 5.37%
4.59%
3.13% 3.30% 3.64% 3.63% 3.35% 3.65%
11.03%
13.59%
19.67%
19.02%
12.07%
14.06%
15.10%
16.64% 16.42%
18.96%
0.78% 0.53% 0.19% 0.42% 2.80%
1.18%
0.22% 0.29% 0.59% 0.59%
0%
5%
10%
15%
20%
25%
0%
10%
20%
30%
40%
50%
60%
2005 2006 2007 2008 2009 2010 2011 2012 2013 Dec-14
CAR ROA ROE NPL

52. Banks’ Large Exposure
December 2014
108 99 89 95 101 96 108 107 119 154 162 170 169 172 176 181
110.6%
73.9%
55.7%
66.8%
78.0%
60.7% 61.2%
54.6%
69.6%
80.2%
87.4%
97.1%
91.2%
104.5%
96.9%
99.6%
0%
20%
40%
60%
80%
100%
120%
0
20
40
60
80
100
120
140
160
180
200
Banks’ Large Exposure
Number of Borrowers Large Exposure to Net Worth

53. Thank You