Path Ahead

With significant progress already achieved, stakeholders pledged to maintain momentum. The third stakeholder dialogue is scheduled for August 2025, as part of continuous monitoring and collective planning to ensure the long-term durability of reforms.

The National Bank of Cambodia (NBC) and the United Nations recently held a high-level consultation in Phnom Penh to evaluate the progress of 22 priority initiatives aimed at reforming Cambodia's microfinance sector within a multilateral framework.

Key Participants & Context
NBC Governor Chea Serey and UN Resident Coordinator Joseph Scheuer convened on January 23, 2025—the date marking the second top-tier stakeholder dialogue since the framework's launch in November 2023. This inclusive process brings together over 100 representatives spanning regulators, industry bodies, financial institutions, civil society, and development partners.

✅ Implementation Status of 22 Priority Actions

According to NBC's press statement, of the 22 agreed reforms:

4 actions completed,

15 in active progress,

3 newly initiated.

Highlighted Milestones include:

Responsible Lending Enhancements: Adoption of a standardized Code of Conduct and expanded consumer protection assessments involving 30 banking & finance institutions. Notably, the use of indigenous communal land titles as collateral is now prohibited, and banks have digital access to official land title registries.

Incentive Alignment: Performance indicators for financial institutions are being recalibrated to reflect lending ethics and “Do No Harm” principles.

Legal Safeguards: A joint statement is under preparation to prevent misuse of key identity documents—such as national IDs and family registrations—as loan collateral.

Consumer Protection & Grievance Mechanisms: A Financial Consumer Centre will be set up under the Association of Banks in Cambodia and the Cambodia Microfinance Association. This includes initiatives for independent debt counseling, mediation services, and financial literacy programs.

Data & Loan Rescue Efforts: Evaluation is underway to create a unified data ecosystem covering banks and MFIs, alongside loan restructuring mechanisms targeting financially vulnerable borrowers.

Insurance Innovation: A pilot climate- and croprisk insurance scheme has been launched within modern agricultural cooperatives, with further scaling underway.

Thematic Emphasis & Next Steps

Transparency through Data Infrastructure: A major theme emerging from the dialogue is the establishment of robust data-sharing mechanisms to bolster sector oversight and policy transparency .

Preparation for High-Level Multilateral Dialogue: The conversation focused on preparing for the third high-level multilateral dialogue on microfinance, designed to drive strategic coordination, exchange insights, and fast-track implementation of pending actions .

Promoting Financial Inclusion & Responsible Lending: The meeting reaffirmed joint commitments to enhance borrower protection, strengthen sustainability, and build an inclusive microfinance system that empowers vulnerable groups—including farmers and indigenous populations.

Path Ahead

With significant progress already achieved, stakeholders pledged to maintain momentum. The third stakeholder dialogue is scheduled for August 2025, as part of continuous monitoring and collective planning to ensure the long-term durability of reforms.