Cambodia Investment Review
The Asian Development Bank (ADB) has approved a $50 million policy-based loan to reinforce Cambodia’s financial sector and accelerate the development of digital finance infrastructure, marking a significant step toward improving financial stability and expanding access to financial services across the country.
Support to Banking, Nonbanking, and Digital Finance Institutions
Under a programmatic approach, the funding will support both banking and nonbanking institutions with a focus on improving sector performance and long-term resilience. The initiative, known as the Inclusive and Sustainable Finance Development Program, targets regulatory upgrades, market efficiency, and expanded financial services for consumers and businesses.
ADB Acting Country Director for Cambodia Anthony Gill said the program aligns with the nation’s long-term economic ambitions. He noted that the investment is intended to strengthen financial inclusion, drive private sector participation, and ensure that economic progress reaches communities across the country.
Addressing Market Depth and Consumer Protection Challenges
Despite Cambodia’s finance sector showing considerable progress in recent years, several structural challenges remain. These include restricted market depth, gaps in investor protection, limited access to financial services for underserved communities, low financial literacy, and insufficient digital infrastructure.
The first phase of the program will focus on enhancing the regulatory environment for financial institutions, improving sector stability, and strengthening consumer protection. It also includes developing strategic plans for emerging financial technologies, including digital assets, cryptocurrencies, and peer-to-peer lending.
Advancing Sustainable Finance and Green Investment Frameworks
To support the transition to sustainability-linked investment, the program will promote a unified national framework for sustainable finance. Measures include the creation of a green finance working group, the release of corporate sustainability disclosure guidelines, and the establishment of enabling mechanisms for sovereign sustainable bond issuances.
ADB emphasized that modernizing Cambodia’s financial system is essential to meeting the country’s development goals to become an upper middle-income economy by 2030 and a high-income economy by 2050. Strengthening financial governance, deepening capital markets, and improving digital connectivity are seen as core pillars for enabling long-term economic growth.
ADB continues to play a central role in development financing across Asia and the Pacific. Established in 1966 and owned by 69 members—50 from the region—the bank works to advance sustainable and inclusive development by supporting major infrastructure and institutional reforms across member economies.
