Financial Dollarization: Evidence from a Survey on Branches of Cambodian Financial InstitutionsFinancial Dollarization: Evidence from a Survey on Branches of Cambodian Financial InstitutionsAA12162457 金融機関とドル化
Although financial dollarization is widely observed in developing countries, there is no clear evidence of how banks deal with multiple currencies in their operation. We conducted a survey on Cambodian financial institutions and collected financial data at bank- and branch-level, in order to reveal the actual situation of Cambodian financial dollarization. We found that there were differences in shares of FX currency deposit and loans between commercial banks (CBs) and microfinance deposit-taking institutions (MDIs). MDIs are likely to have more local currency in their cash on hand, loans, deposits, and borrowings, while CBs rely mostly on FX currency in intermediation. Furthermore, although it is subtle, it can be observed that the share of local currency in deposits has increased over the period of 2009-2013 in the cases both of CBs and MDIs. However, CBs did not allocate KHR funds, although they had large excess KHR funds in Phnom Penh, the capital city. Moreover, FX currency shares in MDIs' loans have been increasing despite the increase of KHR currency in their deposits. Finally, we found that there were regional differences in dollarization of deposits and loans. In particular, branches in rural areas tend to extend more local currency loans than in Phnom Penh.