National Bank of Cambodia

The National Bank of Cambodia (NBC; ) is the central bank of Cambodia. The bank's duties include, inter alia, the management of monetary and exchange policies, the regulation of banks and financial institutions, and the control of the national currency, the riel.[2] The bank was established in 1954,[3] after Cambodia obtained its independence from France,[4] taking over from the Institut d'Émission des États du Cambodge, du Laos et du Viet-nam, a short-lived French quasi-central bank that had itself replaced the Banque de l'Indochine two years earlier.[5]

During Democratic Kampuchea from 1975 to 1979, the whole financial system ceased to exist in the era of the non-monetary economy, but the central bank was re-established in October 1979.[4]

History

Creation of a national bank for Cambodia after independence

The National Bank of Cambodia was established on 23 December 1954, after the country gained its independence from the French Protectorate and after the Institut d’Emission, the printing house for the three Indochinese countries, was terminated. At its inception, the bank emitted the national riel currency with a gold standard of a weight of 25.3905 milligrams of fine gold secured by the assets in gold and foreign currencies by the National Bank of Cambodia itself.[7] It thus served an important role as a mixed-economy entreprise of the Sangkum.[8]

The Cambodian Civil War fragilized the Cambodian banking system and on 28 October 1971, the National Bank ordered the commercial banks to suspend all foreign exchange operations in a vain attempt to establish a "flexible" rate for the riel, whose value collapsed as the United States dollar became the de facto currency.[9]

Destruction by the Khmer Rouge

The National Bank of Cambodia was one of the two buildings along with the Cathedral of Phnom Penh which was systematically destroyed by the Khmer Rouge indicated their two main enemies: capitalism and religion.[10] Only ruins remained of the National Bank of Cambodia following the explosion set off by the Khmer Rouge during the fall of Phnom Penh on 17 April 1975.

Creating a bank in a communist regime under Vietnamese occupation

In an ironic turn of events, the communist regime set up after the Vietnamese invasion in 1979, the People's Republic of Kampuchea, was to reintroduce the use of currency as well as reestablish the capitalist banking system. Since the Khmer Rouge had demolished the main office of the National Bank of Cambodia, the temporary head office of the bank was opened on the upper floor of the Khmer Bank of Commerce with credits from the Soviet Union.[11] Through the 1980s, the Central Bank of Cambodia performed both central and commercial bank functions.[12]

Restoration of the monarchy and the national bank

In 1990, the gravels that were left from the old building were removed to build a new central bank for Cambodia. Gradually the banking system was strengthened and modernized as democracy and monarchy returned to Cambodia after the 1993 general election. The building was renovated once more in 2003 and is now building new headquarters at the same location.[13]

Cambodia has an integrated sectoral financial sector authority model where the National Bank of Cambodia (NBC) is only responsible for consumer protection and market conduct (CPMC) in the banking industry.[14]

bank name	National Bank of Cambodia
native name	ធនាគារជាតិនៃកម្ពុជា
headquarters	Daun Penh, Phnom Penh, Cambodia
established	December 23, 1954
president	Dr. Chea Serey
leader title	Governor
leader2 title	Deputy Governor
bank of	Cambodia
currency	Cambodian riel
currency iso	KHR
reserves	6 760 million USD
website	https://www.nbc.org.kh/
ownership	100% state ownership‡R1R‡

National Bank of Cambodia

History

Creation of a national bank for Cambodia after independence

Destruction by the Khmer Rouge

Creating a bank in a communist regime under Vietnamese occupation

Restoration of the monarchy and the national bank

Board of directors

Branches

See also

Bibliography

References