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Cambodia’s Banking Sector Embraces Compliance Best Practices

PHNOM PENH - In a move aimed at promoting responsible inclusive finance practices, the Association of Banks in Cambodia (ABC) and Social Performance Task Force (SPTF) have entered into a strategic partnership to strengthen cooperation in areas such as risk management, financial stability, and consumer protection.

Partnership Objectives

The Memorandum of Understanding (MoU), signed on April 5th, aims to:

  • Improve compliance with the BFIs’ Code of Conduct by identifying areas for improvement and monitoring progress and challenges in its implementation.
  • Increase financial awareness and literacy among Cambodians.
  • Improve approach to client protection.

Importance of Compliance

ABC Chairman Raymond Sia emphasized the importance of trust, confidence, and consumer protection in banking: “The Code is a crucial framework for promoting responsible growth, financial stability, and consumer protection.”

SPTF’s Director of RIFF-SEA, Nitin Madan, welcomed the partnership, stating that it will involve numerous capacity-building workshops on governance and tools for strengthening client protection in Cambodian banks. “We are delighted to solidify our relationship with ABC and look forward to working together to promote responsible finance practices,” said Madan.

Impact of the Partnership

The partnership aims to:

  • Facilitate effective implementation of the Code of Conduct, promoting financial inclusion in Cambodia and preserving overall stability of the banking system.
  • Showcase consistency with international best practices and become a success story in the Mekong region and Southeast Asia.

Deputy Director General of Banking Supervision at the National Bank of Cambodia, Heng Bomakara, believes that the MoU will promote consumer protection, maintain public confidence, and drive responsible growth: “Consumer protection is a priority for all parties to maintain public confidence and promote responsible growth.”

Conclusion

The partnership between ABC and SPTF marks an important step towards promoting responsible finance practices in Cambodia. With its focus on compliance, financial awareness, and client protection, the partnership has the potential to positively impact the country’s banking sector and contribute to its overall economic development.