Microfinance institution staff count deposits from clients. Post staff
The chairwoman of the Cambodia Microfinance Association (CMA) has reiterated that the association is committed to working with all relevant parties to increase public trust in the Kingdom’s microfinance sector.
In a February 5 release, Dith Nita explained that the CMA is focused on ensuring that it can respond effectively to customer demands and contribute to the development of the financial sector in Cambodia and contribute to the country’s economic growth.
“The CMA is committed to working alongside our partners to ensure that microfinance in Cambodia continues to serve those in need. We recognise the challenges borrowers face and are actively working to improve lending practices and strengthen consumer protections. Our efforts aim to empower borrowers to make informed decisions while safeguarding their rights” she added.
According to the statement, the CMA is addressing several critical issues, including the implementation of enhanced lending standards. In partnership with the National Bank of Cambodia (NBC) and the UN, it is supporting reforms to ensure that loans are granted based on a borrower's ability to repay, rather than relying solely on collateral.
A key measure involves prohibiting the use of Indigenous Communal Land Titles (ICLTs) as collateral, thereby protecting vulnerable communities from the risk of land loss.
Additionally, the CMA is supporting the expansion of the Financial Consumer Centre under the Association of Banks in Cambodia (ABC), which provides borrowers with access to dispute resolution services and enhanced protections.
It is also advancing financial literacy programmes – particularly those which target women and rural communities – through the Safe Community Finance Project, to help borrowers make informed financial decisions and reduce the risk of over-indebtedness.
“Together with our partners, we are working to build a financial sector that is inclusive and offers meaningful opportunities for Cambodia's most vulnerable populations. Our goal is to equip borrowers with the tools needed to succeed financially while protecting them from financial risks,” added Nita.
In late January, the NBC and the UN in Cambodia organised a high-level dialogue meeting which focused on “Microfinance in Cambodia”. Its aim was to monitor the progress of 22 priority activities which were approved during an earlier dialogue. A joint statement released after the meeting declared that the activities were proceeding “smoothly”.
