Cambodia’s Microfinance Sector Faces Scrutiny as CMA Backs Oversight Push

PHNOM PENH, Cambodia (Sept.26, 2025) — The Cambodia Microfinance Association (CMA) is throwing its weight behind a growing push for tighter oversight and consumer protection in the country’s microfinance sector, reaffirming its support for the NBC–UN Multi-Stakeholder Consultation Process.

In a statement released Thursday, CMA said it participated in the third round of consultations led by the National Bank of Cambodia and the United Nations, aimed at tackling rising concerns over over-indebtedness, transparency, and responsible lending. The association highlighted progress on 22 priority actions, including stronger governance, improved financial literacy, and enhanced client safeguards.

The move comes amid mounting pressure from civil society and international partners to rein in aggressive lending practices and ensure fair treatment of borrowers. CMA said it remains committed to working with government institutions, development agencies, and NGOs to promote sustainable microfinance.

Central Bank Governor Chea Serey said 10 measures have been completed, with the remainder—including a new Code of Conduct and responsible pricing framework—set for finalization by year’s end.

“We are building a fair, inclusive and resilient financial ecosystem for all Cambodians,” Serey said, citing efforts to cap lending rates, limit payment terms, and reduce outdated collateral requirements.

The meeting drew over 160 stakeholders from government, finance, civil society and academia. Participants backed the creation of a second emergency relief fund for distressed borrowers and a centralized Financial Consumer Center to streamline complaints and enforce standards.

Separately, CMA spotlighted the Financial Consumer Complaints (FCC) mechanism as a key tool for empowering borrowers. “Centralized complaint resolution is essential to building trust and advancing financial inclusion,” said Kaing Tongngy, Head of Communications at CMA.

The association’s renewed stance signals a shift toward greater accountability in a sector that serves more than two million Cambodians but has faced criticism for lax regulation and limited consumer recourse.

Total outstanding loans across Cambodia’s banking and financial sector reached nearly 60 billion U.S. dollars, reflecting cautious growth of just 3 percent compared to 2023. This slowdown was attributed to tighter lending standards and increased focus on responsible financing. Meanwhile, total deposits climbed to approximately 57 billion U.S. dollars, marking a year-on-year increase of 16.3 percent—an indicator of growing public trust in formal financial institutions.