Microfinance reform requires continued stakeholder dialogue, Serey says

Microfinance reform requires continued stakeholder dialogue, Serey says

Working together helps protect consumers, keep lending fair and honest, and fix new problems in the microfinance sector, NBC says.

Governor of the National Bank of Cambodia (NBC) Chea Serey Thursday urged stakeholders to continue dialogue and work collectively to address concerns facing the microfinance sector, as 16 of 22 priority actions adopted in July 2024 have been completed.

Following the Fourth High-Level Multi-Stakeholder Consultation on ‘Microfinance in Cambodia’, which she co-chaired with Vladanka Andreeva, United Nations Resident Coordinator in Cambodia, Serey wrote on her official Facebook account that 16 of the 22 priority actions had been completed, while six were still progressing.

“But the number matters less than what it represents: we keep showing up, speak honestly, and solve problems together. Reform is not the work of a single meeting — it is a continuous commitment,” she noted

The NBC Governor said the importance of continued dialogue had also been highlighted by recent publicised cases involving the sector, over which different stakeholders have expressed differing views.

“Recently, some publicised cases have drawn attention — CMA maintains these issues were already addressed some time ago, while the organisations that raised them continue to see the matters as unresolved,” she said.

The NBC Governor explained, “This is exactly why dialogue matters: differences like these are best worked through together, at this table, rather than through separate channels that leave the public with only one side of the story.”

She said that the multi-stakeholder platform provides an avenue for different groups to engage directly on concerns affecting the sector, with the United Nations, international agencies and investors participating alongside Cambodian institutions.

“The UN co-organises this platform, alongside international agencies and investors who sit with us as partners. We hope this reassures anyone still weighing whether to trust the process. Our door remains open to anyone who cares about Cambodian borrowers’ wellbeing,” Serey wrote.

She expressed appreciation to all stakeholders, including government ministries, the UN, the Association of Banks in Cambodia (ABC), Cambodia Microfinance Association (CMA), banking and financial institutions, development partners, and investors, for their active participation.

Her comments came amid continued publication and sharing of documentary videos by LICADHO, a human rights non-profit organisation, and certain media outlets concerning past cases involving customers of banking and financial institutions.

In a joint statement issued on August 12, ABC and CMA said they respected the role of civil society organisations and the media in raising public awareness and safeguarding the legitimate interests of citizens.

However, the two associations said the documentary videos presented only a partial picture of the facts and did not fully reflect subsequent measures taken, progress made, or the current status of each case.

“Presenting information without full context may cause public confusion or misunderstanding about the actual situation and may adversely affect public confidence in the banking and financial sector in Cambodia,” the statement said.

ABC and CMA encouraged reporting on the cases to be complete, accurate and balanced, stressing that reports should be based on verified information and include relevant context and timing, subsequent developments, measures taken and the latest status of each case.

The two associations noted that they had previously invited LICADHO and other civil society organisations to participate in dialogue with relevant stakeholders, particularly through the High-Level Multi-Stakeholder Dialogue on ‘Microfinance in Cambodia’, to seek resolutions and protect the public interest.

However, according to ABC and CMA, LICADHO did not participate and has continued to publish documentary videos. The associations said dialogue remained the preferred avenue for addressing issues affecting the people concerned.

ABC and CMA reaffirmed their commitment to complying with applicable laws and regulations while continuing to collaborate with all stakeholders to strengthen responsible financial service delivery, customer protection, complaint resolution and financial education.

Both associations said that they would continue engaging in constructive dialogue with stakeholders to seek practical solutions, protect consumers and reinforce public confidence in the banking system.

According to an NBC announcement, the Fourth High-Level Multi-Stakeholder Consultation on ‘Microfinance in Cambodia’ aimed to review progress in implementing the 22 priority actions adopted at the meeting held on July 12, 2024.

The consultation brought together representatives from government ministries and institutions, the United Nations, ABC, CMA, banking and financial institutions, development partners and investors to review progress and continue discussions on Cambodia’s microfinance sector.

The implementation of the actions was also discussed during a meeting between the NBC Governor and the US Resident Coordinator in Cambodia on August 14, where they agreed to continue preparations for the Fourth High-Level Multi-Stakeholder Consultation on ‘Microfinance in Cambodia’, while further strengthening cooperation with relevant ministries, institutions and stakeholders.

According to the NBC, the cooperation aimed to strengthen consumer protection, promote transparent and responsible lending practices and address emerging challenges in the microfinance sector.

With 16 of the 22 priority actions now completed, stakeholders will continue working on the remaining six while maintaining the multi-stakeholder dialogue as a platform to address concerns and develop practical solutions.

khmertimeskh