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 With more than 80% of the population based in the rural areas, demand for rural credit services is high.
As a result the Microfinance industry in Cambodia is competitive. There are over 30 MFIs or Credit NGOs servicing a total population of just over 13 Million.
By contrast there are fewer than 15 commercial banks in Cambodia - only one of which is state owned.
Inability to verify property rights, lack of contractual enforcement, and the low level of economic activity, in addition to the high cost of rural lending, has restrained commercial lending activities.
NGO - run micro-finance operations have been and still are virtually the sole financial service provider in the rural areas since Cambodia began rebuilding in the early 1990s.
In 2001 it was estimated that current aggregate demand for rural credit is between $75-125 million.
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