AKP Phnom Penh, March 30, 2026 --

Remittances from Cambodians working in Thailand fell 27 percent from a year earlier in 2025, the National Bank of Cambodia (NBC) says in its annual Financial Stability Review.

Published on Saturday, the review said overall inflows of remittances amounted to US$2.1 billion last year with Thailand remaining the largest source (77.3 percent) despite border conflicts.

HIGHER REMITTANCES FROM JAPAN

South Korea ranked second in remittances (12.2 percent) and Japan was third (5.1 percent). Inflows from South Korea fell 15.2 percent while those from Japan jumped 22.5 percent, the central bank said.   

In addition to the decline in remittances, the NBC noted that border closures and product boycotts had “reduced cross-border trade and supply chain adjustments. 

“These developments also affected tourist sentiment, as reflected in the decline of visitor numbers,” it said.

FINANCIAL IMPACTS OF CONFLICT

The NBC said the conflict has lowered household debt-servicing capacity, affecting repayment capabilities.

Moreover, collateral values have deteriorated, increasing pressure to restructure loans.

At the same time, trade relationships and investor confidence have weakened, and reduced revenues for tourism-dependent businesses have affected local credit quality.

THREAT TO FINANCIAL STABILITY

The NBC warned that rising geopolitical tensions, the ongoing border conflicts and potential remittance shortfalls “could pressure household incomes and weaken debt servicing capacity.”

The tensions “represent a localised and transitory development, with the banking system remaining resilient.

“However, operational disruptions in agriculture and retail trade across the seven bordering provinces suggest a need for close monitoring of credit quality and asset performance in those specific regions.

"While the banking system’s capital position provides a buffer against external shocks, the NBC continues to conduct diligent monitoring of credit developments. 

“This oversight is intended to ensure the ongoing resilience of the financial landscape as the situation evolves.”

TARGETED RELIEF MEASURES

In response to the conflicts, the NBC said it had taken numerous steps to help borrowers as well as banks and financial institutions (BFIs).

“The NBC has swiftly implemented targeted relief measures to ease the burden on the vulnerable borrowers and affected BFIs branches,” the central bank said.

“These include the waiver of fees and penalties as well as the deferral of principal, and interest payments for affected civilians and soldiers. 

“Additionally, the NBC has exempted licence fees for BFIs' branches in conflict zones to alleviate their financial hardship and ensure continued operations as soon as conflict has eased.”

By Sao Da