The Kingdom’s leading financial associations have acknowledged that many borrowers face financial difficulties, particularly amid ongoing economic challenges. They noted that household debt and difficulties in repaying loans remain major concerns in Cambodia’s financial sector.
In a joint October 21 statement, the Association of Banks in Cambodia (ABC) and the Cambodia Microfinance Association (CMA) reaffirmed their commitment to promoting responsible lending and improving public financial literacy.
“We take these concerns very seriously and remain committed to ensuring fair relief for borrowers and seeking practical solutions for those experiencing financial hardship,” they said.
The ABC and CMA are working closely with the National Bank of Cambodia (NBC), member institutions and development partners to implement initiatives aimed at strengthening industry standards, promoting responsible lending practices and enhancing consumer protection.
These efforts are designed to complement the NBC’s regulations and supervisory measures, they noted.
According to the statement, joint initiatives already undertaken by the sector include a Code of Conduct for the Banking and Financial Sector; lending guidelines; standardised loan contracts and guidelines; responsible lending training attended by more than 48,000 participants; training on governance and consumer protection; the establishment of the Financial Consumer Protection Center (FCPC); the Sectoral Fund Pool framework; and an industry incentive framework and ethical guidelines for credit-related officers.
In addition, they have introduced specific borrower protection measures, including restrictions on accepting state, protected or community land as collateral for new loans, a prohibition on accepting personal identity cards as collateral and enhanced assessments of the repayment capacity of low-income households to reduce the risk of over-indebtedness.
“Looking ahead, the ABC and CMA will improve debt collection practices and facilitate customer support, including case-by-case loan restructuring for borrowers experiencing repayment difficulties, while expanding access to fair and effective complaint resolution mechanisms,” said the statement.
“We will also support regular monitoring of industry practices and the continued implementation of outstanding priority actions,” it added.
The associations encouraged customers experiencing financial difficulties or wishing to file complaints to contact their banks or financial institutions. Should an issue remain unresolved, they should contact the Financial Consumer Protection Center (FCPC).