PHNOM PENH: The Association of Banks in Cambodia (ABC) and Social Performance Task Force (SPTF) signed a Memorandum of Understanding (MoU) on the 5th of April for a strategic partnership aiming to strengthen responsible inclusive finance practices in Cambodia’s financial sector.
This MoU provides a framework to intensify the cooperation between the two parties to strengthen responsible inclusive practices from a risk management perspective to promote responsible growth, enhance financial stability and increase consumer protection in Cambodia. The MoU also comes in the context of Smart Campaign phasing out, leading to the Cerise+SPTF partnership to play a more active role in that space.
The Association of Banks in Cambodia (ABC) and SPTF agreed to cooperate in a number of areas, including supporting members in successfully adopting the BFIs’ Code of Conduct; supporting members in assessing compliance with BFIs’ Code of Conduct, and identifying areas for improvement; monitoring the progress and challenges of the adoption of the Code of Conduct in the banking system via the use of the Code of Conduct and CP Standards harmonized tool; building the capacity of the members to implement the client protection practices in the Code of Conduct; and finally seeking to be a success story for the Mekong region and Southeast Asia while signalling to external markets and investors that we are aiming for consistency with international good practice. The commitment of ABC members also includes increasing the financial awareness and literacy of the Cambodian people and improving their approach to client protection.
Mr. Raymond Sia, Chairman of the Association of Banks in Cambodia, added: “Banking is built on trust & confidence with our customers, consumer Protection is an important part of banking. The MoU signing ceremony with SPTF would contribute to empowering client protection in Cambodia and also reinforcing the strength & reputation of our banking industry.” He added, “We call- out to all our members to adhere to the principles of the Code and embedded it into their policies and procedures.”
M. Nitin Madan, Director of SPTF’s RIFF-SEA, commented: “We are delighted to cement this relationship with the Association of Banks in Cambodia (ABC). Our work with ABC will include a substantial number of capacity-building workshops on governance and tools for strengthening client protection in banks in Cambodia which is paramount. In addition, I offer my most sincere thanks to the Government of the Grand Duchy of Luxembourg, whose steadfast commitment to our work in Cambodia has been decisive in our ability to create impact.”
In his congratulation Speech, Mr. Heng Bomakara, Deputy Director General of Banking Supervision of the National Bank of Cambodia, said, “The MOU will help pave the way of fostering the effective implementation of the Code of Conduct with the target of promoting responsible growth, enhancing financial stability and increasing consumer protection.” Consumer protection is a prioritized task that all related parties must take into high consideration in order to maintain the public’s confidence and promote financial inclusion in Cambodia while also maintaining the overall stability of the banking system, he added.