The committee took a commemorative photo at the workshop last weekend. Supplied
Client protection practices in Cambodia’s financial sector are receiving considerable attention, with the official implementation of the “Banking and Financial Institutions (BFI) Code of Conduct and Client Protection Harmonisation Assessment” tools.
The initiative was promoted during a workshop organised by the Association of Banks in Cambodia (ABC) and the Cambodia Microfinance Association (CMA), held last weekend with support from Cerise+SPTF, a social performance management venture.
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According to a joint press release from ABC and the CMA, this innovative tool enables independent, third-party assessments of financial institutions' client protection practices, identifying areas of strength and improvement.
The first round of assessments will include the country’s 30 largest financial institutions, providing actionable insights to enhance operations and strengthen client relationships.
The workshop also addressed key challenges facing the country’s financial sector, including managing non-performing loan (NPL) rates, over-indebtedness and the rapid growth of lending.
Stakeholders raised concerns about aggressive sales approaches and risks associated with customer debt, highlighting the need for strengthened client protection measures. These efforts reflect the country’s dedication to aligning with international standards, promoting sustainable growth, attracting investment and safeguarding client well-being.
ABC chairman Rath Sophoan explained, “The implementation of the [assessment tools] means integrating monitoring and evaluation of compliance with the code of conduct with the global client protection standards of the Cerise+SPTF.”
“Our journey … is not only a demonstration of law and regulatory compliance but also a testament to the commitment of the associations and their members to safeguarding the stability of the banking system, conducting business responsibly and transparently, and ensuring that customer protection is a top priority in all banking activities. Furthermore, it is to shape market conduct and mitigate risks, build trust and benefit both customers and banks and financial institutions,” he added.
CMA chairwoman Dith Nita echoed Sophoan’s sentiments, saying, “Today marks the beginning of a new chapter in our commitment to protecting our clients. Cerise+SPTF developed the BFI Code of Conduct and Client Protection Harmonisation Assessment tools, which will serve as key resources to guide BFIs on consumer protection. This tool not only offers a code of conduct for banks and financial institutions, but also provides us with measurable indicators to assess our compliance.”
