Cambodia urged to insure bank deposits

October 5 2015 by InsuranceAsia News Staff

Cambodia has been urged to finally establish a deposit insurance scheme to protect depositors in the event of a bank run.

Cambodia is the only country in the Asean region, with the exception of Myanmar, which has a young banking sector, that does not implement deposit insurance.

Stephen Higgins, managing partner of Mekong Strategic Partners, an investment, risk advisory firm, said that it is about time that the country joins 122 other countries that have already launched a mechanism to protect bank depositors.

Higgins further suggested that Cambodia institutes a national deposit scheme patterned after international models.

The proposal also states that a deposit insurance fund be administered by a legally separate entity within the National Bank of Cambodia, the country’s central bank, and limited to a paybox function.

Central bank officials have declined to comment on the proposed deposit insurance scheme.