Cambodia sees progress in responsible lending: officials

Of 22 priority actions, 4 are complete and 15 are ongoing, the statement said.

Cambodia has made “significant progress” in enhancing responsible lending standards, particularly for its microfinance sector, according to a joint statement by the United Nations (UN) and the National Bank of Cambodia (NBC).

In November 2023, the UN and the NBC commenced an initiative to facilitate constructive engagement, build shared understanding of issues, and identify action steps to strengthen the banking and financial sectors. A total of 22 priority actions were named.

As of 23 January 2025, 4 of these priority actions are completed whilst 15 are in progress.

Amongst progress include the implementation of the Code of Conduct and adopting the Consumer Protection Harmonization Assessment Tool, in which 30 banking and financial institutions (BFIs) set to participate in upcoming third-party assessments.

Lending guidelines were also reportedly reinforced, with the prohibition of using Indigenous Communal Land Titles (ICLTs) as collateral, and the prevention of forced sale of these titles.

BFIs in Cambodia also now have online access to information on registered hard titles of ICLTs and state-owned lands, which are legally restricted from being used as collateral, the UN and NBC said in the joint statement.

NBC and the UN have prepared a joint statement to enforce existing regulations against the misuse of identification documents such as equity cards, national ID cards, and family books as collateral in any form of lending practices.

Cambodian authorities are also rolling out consumer protection and complaint resolution mechanisms. This includes the establishment of a Financial Consumer Centre under the Association of Banks in Cambodia (ABC) and the Cambodia Microfinance Association (CMA).

A pilot climate risk and crop insurance program under the Modern Agricultural Cooperative has also been launched with the support of the private sector.

The next high-level multi-stakeholder dialogue is scheduled for August 2025.