The Cambodia Microfinance Association (CMA) and the Social Performance Task Force (SPTF) have partnered on strengthening client protection in Cambodia’s financial services.

The two parties signed the agreement on July 22 at the Hyatt Regency in Phnom Penh along with senior management from the National Bank of Cambodia.  Financial inclusion stakeholders from around the world joined the event virtually.

Increasing client protection is a priority under Cambodia’s National Financial Inclusion Strategy for long-term market sustainability, senior official at the National Bank of Cambodia said.

“Building trust on formal financial services remains crucial to increase financial inclusion in Cambodia and ensure the stability of the whole banking system while customer protection is the priority for all stakeholders,” said Mr. Kith Sovannarith, First Deputy Director General of Banking Supervision with the National Bank of Cambodia.

The new partnership, a first of its kind, will help chart a roadmap for responsible growth, financial stability and customer protection in Cambodia’s microfinance and broader financial sector, said Mr. Nitin Madan, the SPTF Director of Responsible Inclusive Finance Facility for Southeast Asia (RIFF-SEA).  

“The CMA and its members can also apply for co-financing for implementing and strengthening capacity on responsible, inclusive finance practices of financial service providers in Southeast Asia,” Mr. Nitin Madan added. 

The Cambodia Microfinance Association is a nonprofit sector association, with more than 120 member organisations, established to ensure that Cambodians receive formal financial services in a timely and sustainable manner. 

The CMA works with microfinance institutions, banks, financial leasing institutions and rural credit institutions which also engages with regulators, national and international donors, creditors, investors and other stakeholders.

The recently adopted banking and financial sector Code of Conduct led by CMA promotes the adoption of international best practices in Cambodia to reiterate the commitment of financial institutions to clients and promote a healthy reputation of the sector. 

“This partnership aims to strengthen responsible inclusive practices from a risk management perspective to promote responsible growth, enhance financial stability and increase consumer protection,” said CMA Chairman Mr. Sok Voeun.

Source: Agency Kampuchea Press