PR86804

PHNOM PENH, Cambodia, Nov. 23, 2020 /PRNewswire=KYODO JBN/--

With Cambodians facing the ongoing challenges of COVID-19 and the devastation

of recent flooding across the country, the Kingdom's banking and finance

institutions (BFIs) are extending a helping hand in difficult times, including

the Association of Banks in Cambodia.

https://mma.prnewswire.com/media/1340503/microfinance_loan_officer.jpg

Since the beginning of 2020, Cambodia's BFIs have raised more than US$500,000

in donations for health, sanitary and food supplies to support vulnerable

communities.

"Banking and finance are 'people businesses' at their heart and are driven by

the ambition of helping people succeed and prosper through formal financial

services. But this ambition clearly extends to helping people in need in any

way we can," says Dr. In Channy, Chairman of the Association of Banks in

Cambodia (ABC).

According to a recent Association survey, more than half of Cambodia's BFIs

have embedded social impact in their core mission statements, with several

committing a fixed percentage of revenue to support social causes related to

the environment, education, healthcare and financial inclusion.

"MFIs in particular have a special place in post-war Cambodian society and the

vast majority of our members put social impact at the heart of their

operations," explains Cambodia Microfinance Association (CMA) Chairman, Mr. Kea

Borann. "But it is about more than charitable donations and volunteer work,

although those are important, and extends to the way the MFIs prioritize their

customers' wellbeing in everything they do."

"During the COVID-19 pandemic, we have redoubled efforts to help clients by

restructuring more than 270,000 loans valued at over 3 billion dollars with

more work ongoing as the extent of the pandemic and the effects on the economy

become clearer," he says.

"We are also working with our members to prepare for legislation currently

being drafted that will embed client protection in Cambodian law, a move we

strongly endorse," says Mr. Kea, noting that Cambodia's 9 leading MFIs and

banks are already certified by the Smart Client Protection Principles, the

global body that certifies microfinance institutions' adherence to client

safeguarding principles.

Beyond tightening up legislation, the associations and the National Bank

Cambodia (NBC) have been accelerating efforts to improve financial literacy and

inclusion in the Kingdom with an ambitious campaign explaining the basics of

sustainable borrowing and lending.

The campaign will include social and traditional media as well as targeted

workshops for SMEs, female entrepreneurs and agriculture businesses to improve

the quality of borrowing among traditionally 'underbanked' segments of the

population.

"Our industry is in a state of almost constant evolution as we face the

challenges of the pandemic as well as the opportunities of an increasingly

diversified economy where digital adoption is changing the way everyone does

business," says Dr. In Channy. "The finance sector is committed to ensuring

this evolution continues, putting our customers at the centre of everything we

do through improved protections and better financial education to help them

withstand the global economic downturn brought on by the coronavirus pandemic,"

he adds.

SOURCE  Association of Banks in Cambodia

Image Attachments Links:

   Link: http://asianetnews.net/view-attachment?attach-id=377772

   Caption: A microfinance loan officer visits a farmer in a rice field in Cambodia