PM Calls for Calm After Collapse of Two US Banks

Prime Minister Hun Sen is urging Cambodians not to panic and withdraw cash from their accounts following the collapse of two major US banks, saying it will not impact Cambodia
A food vendor in Phnom Penh. Kiripost/Siv Channa
A food vendor in Phnom Penh. Kiripost/Siv Channa

The Cambodian Prime Minister on Thursday called on Cambodian citizens not to worry about ​money deposited in Cambodia’s banks after the recent collapse of two US banks.

At the graduation ceremony for Build Bright University students, Hun Sen said, “Do not panic about the collapse of the US banks. This isn't an Asian economic crisis.”

He referenced the 2008 global financial crisis, which was triggered by the collapse of US banks. However, he said this did not affect Cambodia and the country put in place measures to minimise any risk.

“I would like to call on those who still have money deposited, please do not over-panic. If you panic, it can lead us to lose interest,” the PM warned.

Cambodian economist, Ky Sereyvath, told Kiripost that regarding the collapse of the US banks, he has not yet concluded how it will impact the global economy. He added that the US banking system remains afloat and the collapse of the banks has only directly affected the banking sector or banking institutions associated with these two major banks.

“So far, we have not seen it as a crisis of the US financial system because the National Bank of America (US Federal Reserve) has not yet intervened on this issue,” Sereyvath said.

“This collapse is a mistake in management rather than the collapse of the US financial system. When the financial system hasn’t yet collapsed, a global economic crisis is not a problem and there is no impact on the Cambodian economy,” he added.

Recently two major US banks, Silicon Valley Bank (SVB) and Signature Bank, collapsed.