AKP Phnom Penh, July 08, 2025 --

The Cambodia Microfinance Association (CMA) reaffirms its lasting commitment to borrower protection across the country through strengthened systems, institutional standards, and engagement practices that reinforce fairness, transparency, and respect in every client interaction.

During the CEO Club meeting late last week, which brought together the 130 CEOs and executive of CMA member microfinance and financial institutions, the Association underscored that borrower protection is a collective duty, essential to public trust and long-term sector stability, according to a press release published on July 7. 

CMA continues to guide the growth of responsible microfinance in Cambodia, where borrowers are served with clarity, dignity, and lasting protection.

All CMA members follow a unified Code of Conduct that defines responsible lending practices and client protections. The code is aligned with international client protection principles and rooted in Cambodian values. It requires informed consent, clear disclosure of loan terms, and a thorough assessment of each borrower’s ability to repay. CMA maintains zero tolerance for coercion, threats, or pressure toward borrowers. Every client has the right to be treated with dignity, including during late repayment or financial hardship.

To translate these commitments into practice, CMA provides regular training for field staff across all member institutions. These sessions focus on borrower education, respectful communication, financial ethics, and cultural awareness, particularly in rural and high-risk areas. Loan officers are trained to uphold compliance standards and to engage each borrower with professionalism and respect.

The Cambodia Microfinance Association continues to focus on key priorities to protect borrowers and strengthen responsible lending. In partnership with the National Bank of Cambodia and the United Nations, CMA is supporting reforms that ensure loans are based on a borrower’s ability to repay rather than collateral alone. A key measure includes prohibiting the use of Indigenous Communal Land Titles as loan collateral, helping to protect vulnerable communities from the risk of land loss.

Additional safeguards include the strengthening of the Financial Consumer Centre (FCC), now operating as an independent entity with its own management, separate from both the Association of Banks in Cambodia and CMA. The FCC provides complaint resolution for both associations, reinforcing transparency, accountability, and a sector-wide commitment to fair and responsive practices.

CMA is also deepening financial literacy efforts, particularly through the Safe Community Finance Project, to help borrowers make informed decisions and reduce the risk of over indebtedness.

This work includes an increased focus in provinces like Rattanakiri province, where strengthened engagement and borrower protections are especially important. The goal is to ensure that all borrowers have the tools and understanding they need to navigate financial decisions with confidence and clarity. 

Borrower protection is a shared responsibility across our entire sector. CMA’s commitment is clear: every borrower, in every community, must be treated with fairness, respect, and dignity. These efforts reflect CMA’s continued dedication to a sector that listens, learns, and protects, where borrowers are not only clients, but valued partners in Cambodia’s development. 

The Association will continue working alongside regulators, civil society, and international partners to ensure that Cambodia’s microfinance sector remains a model of inclusive and ethical finance, serving borrowers with integrity and supporting them at every step of their journey.

By Chea Vannak