ABC, CMA pledge consumer protection amid rising debt

ABC, CMA pledge consumer protection amid rising debt

Both associations reaffirm their commitment to financial literacy, fair borrower treatment and better complaint resolution across the sector.

The Association of Banks in Cambodia (ABC) and the Cambodia Microfinance Association (CMA) have pledged to strengthen responsible lending practices and consumer protection as concerns over household indebtedness and borrower welfare continue to draw public attention.

In a joint statement issued on Wednesday, the two associations reaffirmed their commitment to promoting financial literacy, ensuring fair treatment of borrowers and improving complaint-resolution mechanisms across Cambodia’s banking and financial sector.

They acknowledged that while access to formal financial services has supported livelihoods, businesses and economic development, some borrowers have encountered financial difficulties, particularly amid challenging economic conditions.

“We take these concerns seriously and remain committed to fair treatment of borrowers and practical solutions for those facing financial difficulties,” the associations said.

Working closely with the National Bank of Cambodia (NBC), member institutions and development partners, ABC and CMA have introduced a range of initiatives aimed at improving lending standards, strengthening industry accountability and protecting financial consumers.

These measures include a banking and financial institutions’ Code of Conduct, lending guidelines to help credit officers assess borrowers’ repayment capacity and standardised loan contracts designed to improve transparency and clarify loan terms.

The associations have also implemented a Responsible Lending Certification Programme, which has reached more than 48,000 participants, alongside governance and consumer protection training for 366 chief executives, board members and shareholders, as well as more than 1,123 branch managers nationwide during 2025-2026.

Additional safeguards have been introduced to protect vulnerable borrowers, including restrictions on accepting certain state, protected and collectively held lands as collateral for new loans, a prohibition on accepting personal identification documents as collateral, and enhanced repayment-capacity assessments for low-income households.

ABC and CMA also highlighted the role of the Financial Consumer Protection Centre, which operates independently of the two associations and provides consumer guidance, financial education and complaint mediation services.

Since July 2025, the centre has managed the consumer complaint hotline previously operated jointly by ABC and CMA.

The associations said the initiatives complement NBC’s regulatory and supervisory measures and form part of broader efforts to promote responsible borrowing, improve financial literacy and strengthen public confidence in the financial sector.

Progress has also been made through a high-level multi-stakeholder dialogue on microfinance in Cambodia, co-organised by NBC and the United Nations. The process identified 22 priority actions to strengthen responsible finance and consumer protection.

Despite progress, the associations acknowledged that establishing policies and mechanisms alone is insufficient, stressing that consistent implementation and tangible benefits for customers remain essential.

“Further work remains necessary to address shortcomings and strengthen public confidence,” they said.

ABC and CMA pledged to work with NBC, financial institutions and relevant partners to strengthen the implementation of responsible lending standards, improve debt collection and customer treatment practices, and support appropriate case-by-case loan restructuring for borrowers experiencing repayment difficulties.

By June 2026, outstanding loans rose 4.6% year-on-year to $64.2 billion, while customer deposits grew 4.4% to $64.4 billion, an NBC biannual report showed.

The banking system’s Non-Performing Loan ratio rose to 9.6%, up from 8.4% in June 2025, it added.

As of mid-2026, Cambodia’s financial infrastructure comprises 58 commercial banks, three deposit-taking microfinance institutions (MFIs), 85 non-deposit-taking MFIs, seven specialised banks and 88 rural credit institutions.

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