The Association of Banks in Cambodia (ABC) and the Cambodia Microfinance Association (CMA), with the support of Cerise+SPTF, hosted a workshop on November 22nd at the Center for Banking Studies (CBS), setting a new standard for client protection in Cambodia’s financial sector. This event marks a critical milestone in implementing the BFI Code of Conduct (CoC) and the globally recognised Cerise+SPTF Client Protection Standards, demonstrating Cambodia’s commitment to responsible and inclusive finance.
Over 150 participants attended the workshop, including representatives from the National Bank of Cambodia, ABC and CMA members, Cerise+SPTF, and senior executives from the top 30 banks and financial institutions. The primary focus was the launch of the “BFI Code of Conduct and Client Protection Harmonisation tools” and assessment project, a first-of-its-kind instrument integrating Cambodia’s BFI Code of Conduct with the Cerise+SPTF Client Protection Standards.
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 Cambodia’s financial sector, including managing non-performing loan (NPL) rates, over-indebtedness, and rapid lending growth. Stakeholders highlighted concerns about certain practices, such as assertive sales approaches and risks associated with client indebtedness, underscoring the need for strengthened client protection measures. These efforts reflect Cambodia’s dedication to aligning with international standards, promoting sustainable growth, attracting investment, and safeguarding the well-being of clients.
The initiative builds on previous efforts that began in 2022 with the introduction of the BFI Code of Conduct, providing principles and standards for ethical banking, the 2023/2024 workshops on the role of corporate governance in effective implementation of client protection, key recommendations from events like the January 2024 “Strengthening Responsible Inclusive Finance in Cambodia” workshop and the UN-NBC consultation in July 2024 informed the development of the assessment initiative.
Rath Sophoan, chairman of ABC, explained “The implementation of the BFIs Code of Conduct and Client Protection Harmonisation Assessment tools means integrating monitoring and evaluation of compliance of the Code of Conduct with the Global Client Protection Standards of the Cerise+SPTF.”
“Our journey for monitoring and evaluating compliance with the Code of Conduct and Consumer Protection in banks and financial institutions today 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 banking business responsibly, transparently, and ensuring that customer protection is a top priority in all banking activities. Furthermore, it is to shape market conduct and mitigate risks and build trust as well as benefiting both customers and banks and financial institutions,” Sophan added.
Dith Nita, Chairwoman of CMA, echoed these sentiments, “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 be one of the tools we utilise to guide BFIs on consumer protection. This tool not only offers a code of conduct for banks and financial institutions, but it also provides us with measurable indicators to assess our compliance.”
