Background
The National Bank of Cambodia (NBC) has issued Prakas No. B37.026.204 Prokor, dated 20 March 2026, on Emergency Liquidity Assistance for Deposit-Taking Banking and Financial Institutions. This Prakas updates and replaces Prakas No. B7-015-153 Prokor, dated 17 March 2015, on Emergency Liquidity Assistance for Banks and Financial Institution. The new instrument is intended to strengthen the framework through which the NBC can provide liquidity support to eligible institutions within the Cambodian financial system.
Scope of Application
The Prakas applies to deposit-taking banking and financial institutions operating under the supervisory authority of the National Bank of Cambodia. It covers institutions that may encounter temporary liquidity problems and sets out the conditions under which they may request emergency liquidity assistance from the NBC.
Key Provisions or Decisions
According to the NBC announcement, the Prakas establishes a framework for providing emergency liquidity assistance as a sound option for deposit-taking banking and financial institutions. Under this framework:
- Emergency liquidity assistance is made available as a last-resort option for institutions experiencing temporary liquidity issues.
- The objective of the assistance is to prevent systemic risks and to help maintain overall financial stability.
- The NBC will continue to exercise its role as the supervisory authority responsible for supporting financial stability.
- The provision of emergency liquidity assistance will be conducted cautiously, under clear conditions, and based on risk management principles for the banking system.
Implications for Investors, Businesses, or Compliance
The updated Prakas provides a clarified and strengthened framework for last-resort liquidity support, which is relevant for deposit-taking banking and financial institutions in managing liquidity risk. Market participants may rely on this framework as part of the broader financial safety net aimed at preserving financial stability. Institutions seeking such assistance must operate within the conditions and risk management principles defined by the National Bank of Cambodia in this Prakas.
Official Source
The information is based on an official announcement by the National Bank of Cambodia regarding the issuance of Prakas No. B37.026.204 Prokor on Emergency Liquidity Assistance for Deposit-Taking Banking and Financial Institutions.
