Cambodia’s bank runs expose fragile depositor confidence

The exit of these weak small banks is unlikely to improve sector resilience, S&P said.

Cambodia’s banking sector will continue to be under pressure, highlighted by the recent failure of two small lenders and large withdrawals, said S&P Global Ratings.

The recent bank failures highlight systemic vulnerabilities and fragile depositor confidence, the ratings agency said in an April 2026 report.

Prince Bank was placed under liquidation in January 2026 by the National Bank of Cambodia (NBC); whilst in March, the Asia-Pacific Development Bank (APD Bank) reportedly saw hundreds of its depositors demand to take out their money after some banking services became temporarily unavailable, according to local media reports.

“Although the deposit runs were limited to the affected banks, we believe overall depositor confidence will remain fragile,” S&P warned in its report.

The exit of these weak small banks is also unlikely to improve sector resilience, given their negligible market share. Rated banks could benefit from flight to quality, S&P said.

Regulators have stepped in by introducing a framework to provide liquidity into the banking system through the Emergency Liquidity Assistance Facility. However, regulators have limited resources, S&P said.

“Moreover, the Cambodian economy is US dollar based. And depositor payouts are underway from closed-down banks, beginning with Prince Bank. Efficient liquidation will be the key for restoring confidence,” it said.