Responsible Inclusive Financial Practices in Cambodia’s Financial Sector Promoted

The Association of Banks in Cambodia (ABC) and Social Performance Task Force (SPTF) have entered a partnership to promote responsible inclusive finance practices in Cambodia’s financial sector.

The Memorandum of Understanding (MoU), signed last week, provides a framework to intensify the cooperation between the two parties to strengthen responsible inclusive practices from a risk management perspective to promote responsible growth, enhance financial stability and increase consumer protection in Cambodia, according to a press release on April 9.

Under the MoU, ABC and SPTF agreed to cooperate in a number of areas, including supporting members in successfully adopting the BFIs’ Code of Conduct; supporting members in assessing compliance with BFIs’ Code of Conduct, and identifying areas for improvement; monitoring the progress and challenges of the adoption of the Code of Conduct in the banking system.

ABC Chairman Mr. Raymond Sia said that the MoU with SPTF would contribute to empowering client protection in Cambodia and also reinforcing the strength and reputation of the banking industry.

“We call out to all our members to adhere to the principles of the Code and embedded it into their policies and procedures,” he said.

M. Nitin Madan, Director of SPTF’s RIFF-SEA, commented that the MoU will include a substantial number of capacity-building workshops on governance and tools for strengthening client protection in banks in Cambodia which is paramount.

Mr. Heng Bomakara, Deputy Director General of Banking Supervision of the National Bank of Cambodia, said that consumer protection is a prioritised task that all related parties must take into high consideration in order to maintain the public’s confidence and promote financial inclusion in Cambodia while also maintaining the overall stability of the banking system.

“The MOU will help pave the way of fostering the effective implementation of the Code of Conduct with the target of promoting responsible growth, enhancing financial stability and increasing consumer protection,” he said.