Environmental, social, and governance (ESG)-aligned financing. Supplied
Cambodia's financial sector is undergoing a quiet yet powerful transformation — one that centres on sustainability, responsibility and community empowerment, say the Association of Banks in Cambodia (ABC) and the Cambodia Microfinance Association (CMA).
From commercial banks to microfinance institutions (MFIs), Cambodian financial service providers are increasingly embracing ethical lending practices, environmental, social and governance (ESG)-aligned financing, and inclusive economic development that benefits both people and the planet, explained a June 16 joint release from the two bodies.
It noted that the momentum began in 2019 when the ABC, with support from the National Bank of Cambodia (NBC) and the Ministry of Environment, introduced the Cambodian Sustainable Finance Principles (CSFP). These voluntary guidelines help financial institutions incorporate environmental, social and governance considerations into their lending practices.
“As responsible providers, we are committed to ensuring financial access while contributing positively to the well-being of the population, always upholding the principles of transparency, fairness and social responsibility,” said ABC chairman Rath Sophoan.
In parallel, MFIs under the CMA have shown equal dedication to advancing responsible finance, he added.
To improve access to capital and support small businesses, the CMA recently entered a three-year partnership with the state-owned Credit Guarantee Corporation of Cambodia (CGCC).
The agreement enables MFIs to extend more credit to Micro, Small and Medium Enterprises (MSMEs), particularly women entrepreneurs and those in rural areas, by offering credit guarantees and financial literacy training.
At the community level, both banks and MFIs have launched major financial education campaigns.
Since 2020, ABC and CMA members have been actively driving monthly digital financial literacy campaigns — supercharging their impact with a dynamic weekly rollout starting in 2023. ABC and CMA's “Safe Finance” programme, supported by the NBC and various financial institutions, is distributing educational materials across communes and villages to raise awareness of borrower rights and financial safety.
“Digital payments and inclusive finance are transforming lives in Cambodia, especially in underserved areas. By promoting access and accountability, we are building a more inclusive economy that empowers individuals and protects communities,” said Dith Nita, chair of the CMA.
“Together, Cambodia's banks and MFIs are not only financing growth but doing so responsibly,” said the statement.
Whether it's investing in ESG-aligned infrastructure, providing affordable credit to rural entrepreneurs or ensuring every borrower understands their rights, the sector is proving that responsible finance is not just possible in emerging economies — it’s essential.
“As global investors increasingly prioritise transparency, sustainability and long-term impact, Cambodia's financial sector is steadily emerging as a model for Southeast Asia,” added the statement.
