Cambodia unveils 10-year financial strategic plan

Cambodia unveils 10-year financial strategic plan

Cambodia on Tuesday unveiled the Financial Sector Development Strategy 2011-2020 aimed at developing an effective, integral and competitive financial system, said Chea Chanto, the governor of National Bank of Cambodia.

"The strategy will develop a sound, market-oriented finance sector that will enhance resource mobilization and allocation and consequently support sustainable economic growth,"he said."It will make finance more widely accessible and inclusive to overall poverty reduction."

The strategy focuses on establishment of strong cooperation framework amongst related financial authorities, revision of legal and cooperation framework, crisis preparedness through establishing a Financial Stability Unit and an effective Early Warning System within banking system.

It also sets vision for the development of microfinance institutions, non-banking sector, capital market, and payments system.

Minister of Finance Keat Chhon said the strategy is to respond to the needs of the development of the financial sector in Cambodia.

"The strategic plan will help to strengthen the capacity of the regulators and all financial operators with codes of ethics and high profession," he said. "The document will also move in tandem with the preparation of ASEAN Financial Sector Integration Roadmap."

The development of the FSDS 2011-2020 was done with the technical and financial support from the Asian Development Bank ( ADB).

"The strategy is the update one from the first FSDS 2006-2015, it revised opportunity, constraints, challenges and gaps in the development of the country's financial sector," Putu Kamayana, country director of ADB. "It focuses on providing regulatory measures to ensure sound management of the country's financial sector in the next ten years."

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