Cambodia Investment Review
The Association of Banks in Cambodia (ABC) and Social Performance Task Force (SPTF) have entered into a strategic partnership to promote responsible inclusive finance practices in Cambodia’s financial sector.
The two parties signed a Memorandum of Understanding (MoU) on April 5th, which serves as a framework for strengthening cooperation in responsible finance practices, risk management, financial stability, and consumer protection in Cambodia. This MoU follows the phasing out of the Smart Campaign, with Cerise+SPTF taking on a more active role in this area.
Under the agreement, ABC and SPTF will collaborate in various areas to improve the Cambodian financial sector. They will support members in adopting and assessing compliance with the BFIs’ Code of Conduct, identify areas for improvement, and monitor progress and challenges in its implementation.
Additionally, they will build members’ capacity to implement client protection practices outlined in the Code of Conduct, aiming to become a success story in the Mekong region and Southeast Asia while showcasing consistency with international best practices.
Increasing financial awareness and literacy
The commitment of ABC members also includes increasing the financial awareness and literacy of the Cambodian people and improving their approach to client protection. Raymond Sia, Chairman of the Association of Banks in Cambodia, emphasized the importance of trust, confidence, and consumer protection in banking. He encouraged all members to adhere to the Code’s principles and incorporate them into their policies and procedures.
Nitin Madan, Director of SPTF’s RIFF-SEA, expressed delight in solidifying the relationship with ABC. The partnership will involve numerous capacity-building workshops on governance and tools for strengthening client protection in Cambodian banks. Madan also thanked the Government of the Grand Duchy of Luxembourg for their unwavering support in Cambodia, which has been crucial in creating impact.
Heng Bomakara, Deputy Director General of Banking Supervision of National Bank of Cambodia, believes that the MoU will facilitate the effective implementation of the Code of Conduct, promoting responsible growth, financial stability, and consumer protection. He emphasized the importance of consumer protection as a priority for all parties to maintain public confidence, promote financial inclusion in Cambodia, and preserve the overall stability of the banking system.
Promoting Cambodia’s financial sector
The Association of Banks in Cambodia is a non-profit organization that promotes the development of the Cambodian financial system while protecting the legitimate interests of its members. ABC works closely with local and international authorities, associations, organizations, and institutions to achieve its mission.
Cerise+SPTF is a collaboration that translates high-level principles and frameworks for social performance in the financial sector into concrete, practical actions. The partnership aims to ensure that vulnerable low-income clients are not exploited and that products and services help create better lives.
