Cambodia Microfinance Association Partners With NBC and UN To Safeguard Vulnerable Populations
The Cambodia Microfinance Association (CMA) has partnered with the National Bank of Cambodia (NBC) and the United Nations to better safeguard and protect borrowers and to try and improve lending practices in the Kingdom.
The Cambodia Microfinance Association (CMA) is a professional organisation dedicated to promoting responsible and sustainable microfinance practices in Cambodia. Since 2024, the National Bank of Cambodia (NBC) and the United Nations (UN) have “led consultations to address key challenges within Cambodia's microfinance sector, including over-indebtedness, land-related financial risks, and consumer protection” said the press release on 5 February 2024.
This initiative engages over one hundred stakeholders from government bodies, civil society, financial institutions, and development partners to enhance lending practices and ensure the sector's long-term sustainability and the CMA is committed to collaborating to safeguard vulnerable populations and maintain microfinance as a valuable tool for economic empowerment.
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," said Dith Nita, Chairwoman of the CMA.
The CMA is addressing among others:
- The implementation of enhanced lending standards - (In partnership with the NBC and the UN), the CMA is supporting reforms to ensure that loans are granted based on a borrower's ability to repay, rather than relying solely on collateral which includes prohibiting the use of Indigenous Communal Land Titles (ICLTs) as collateral. This is hoped to protect vulnerable communities from the risk of land loss.
- Supporting the expansion of the Financial Consumer Centre under the Association of Banks in Cambodia (ABC) - Providing borrowers with access to dispute resolution services and enhanced protections.
- Advancing financial literacy programs - Particularly aimed at women and rural communities through the Safe Community Finance Project - this should help borrowers make informed financial decisions and reduce the risk of over-indebtedness.
Dith Nita commented, “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.”
As the consultation progresses, the CMA “urges all stakeholders, investors, policymakers, regulators, civil society, financial institutions, and development partners to unite in shaping Cambodia's microfinance sector.”
- By August 2024, microfinance institutions (MFIs) in Cambodia had disbursed loans totalling over US $5 billion, with total assets reaching approximately US $6.2 billion.
- The sector serves around 1.6 million loan accounts, with approximately three-quarters of Cambodians living in rural regions benefiting from these financial services.
In Separate news, in February 2025 it was also announced that the Credit Bureau Cambodia (CBC) allows Cambodians to request a free annual personal credit report via the CBC app to monitor credit health, detect errors and secure better loan terms.