The National Bank of Cambodia (NBC) and the General Commissariat of National Police have again called on the public to utilise formal financial service providers licenced by the government, not the informal and unlicensed ones.

The urge was highlighted in a joint statement between NBC and the General Commissariat of National Police released recently.

Legal financial service providers include authorised commercial and specialised banks, micro-finance institutions, financial leasing companies, payment service providers, and rural credit institutions.

The notification followed an observation of emerging advertisement mobile phone, social media, and other online platforms for informal financial service provision, especially loans.

Calling them anarchical and illegal services, the statement underlined it is misleading the public and hampering the economy and society.

Those loans charge very high interest rates along with intimidation and exploitative contracts threatening people's livelihood due to over-indebtedness.

It eventually implicates financial stability, public trust, financial inclusion and development of banking system in Cambodia at large, it added.

The NBC and the national police also encouraged the public to report any suspected informal and illegal financial service provider through the contacts listed in the statement.

Source: Agence Kampuchea Presse (AKP)