Logo of Phnom Penh Post newspaper Phnom Penh Post - CBC chips in with $1M for financial inclusion reforms

CBC chips in with $1M for financial inclusion reforms

Content image - Phnom Penh Post
Wild mushroom foragers sell their fresh picked wares along National Road 62 in Preah Vihear province’s Thmey commune. Some 59 per cent of Cambodians do not have access to formal financial services. FRESH NEWS

CBC chips in with $1M for financial inclusion reforms

Independent financial information provider Credit Bureau (Cambodia) Co Ltd (CBC) has announced a commitment of $1 million to promote financial inclusion in the Kingdom.

The sum will support the National Bank of Cambodia- (NBC) developed National Financial Inclusion Strategy (NFIS) 2019-2025, centred on initiatives around responsible lending, gender-inclusive access to finance, and financial education, according to CBC.

The firm pointed out that some 59 per cent of Cambodians do not have access to formal financial services, whereas 29 per cent of adult Cambodians are completely excluded from access to formal as well as informal finance.

Priority activities in NFIS 2019-2025 include the promotion of innovative credit products, consumer empowerment and protection, financial sector transparency, among others that aim to reduce financial exclusion of women by half from 27 per cent to 13 per cent and increase usage of formal financial services from 59 per cent to 70 per cent by 2025, it noted.

CBC said it will also join hands with players in the Cambodian financial ecosystem to further strengthen progress on financial inclusion.

Strengthening reporting and supporting responsible lending through expansion of coverage of reporting financial institutions will be a key focus area under the plan, it said.

Enabling women’s access to finance, promoting financial literacy on credit reporting, digital finance education and consumer protection will be priority areas, it added.

CBC chairwoman and NBC assistant governor Dr Chea Serey said: “Financial inclusion is a strong enabler of addressing country’s economic growth and reducing inequality.

“As a key financial infrastructure in the country, CBC’s support shall bring synergy in NBC’s initiatives in driving financial inclusion in the country.

“CBC’s support areas shall help further improve inclusive and efficient credit markets, minimise transaction costs and reduce consumer vulnerabilities,” she said.

CBC CEO Oeur Sothearoath said: “We would like to express our commitment to support the implementation of NFIS 2019-2025 and contribute to enable wider access to financial services to all Cambodians thereby promoting their economic opportunities and well-being.”

CBC said it manages the most comprehensive credit reporting system in the Kingdom, covering credit histories of more than seven million borrowers from more than 170-member financial institutions under the NBC’s Prakas on Credit Reporting from the National Bank of Cambodia.

This prakas enables lenders to quickly check credit histories of borrowers without which the whole decision process becomes very lengthy and tedious, the firm said.

MOST VIEWED

  • Massive stingrays may live in Mekong’s deep pools

    US scientists have suggested that unexplored deep pools in the Mekong River in an area of Stung Treng could potentially be home to significant populations of giant freshwater stingrays, one of the world’s largest freshwater fish species. This comes as a fisherman hooked a 180

  • CCC team off on US business trip

    The Kingdom’s leading economists and private sector representatives have called on the US to renew its tax preferential status for Cambodian exports, as a Cambodia Chamber of Commerce (CCC) delegation departed for a weeklong business visit to the US, where they will meet with

  • PM takes time to meet, greet Cambodians living in the US

    After landing in the US ahead of the ASEAN-US Special Summit, Prime Minister Hun Sen was received by over 1,000 Cambodian-Americans including political analysts who welcomed him with greetings, fist bumps and selfies. Hun Sen also met with analyst Mak Hoeun, who had allegedly spoken ill

  • Khmer cinema classics back on big screen for free at WB Arena’s outdoor movies series

    On a recent Saturday evening at WB Arena, Bunsong was enjoying a tasty BBQ meal with his family after work on the long tables that had been arranged out in front of the restaurant as they watched a Khmer action movie on a big outdoor

  • PM heads to Washington for ASEAN-US special summit

    Regional and international issues and how to bring the ASEAN-US partnership to another level will be discussed at length as Prime Minister Hun Sen and his ministers arrive in Washington, DC, for a special summit on May 12-13. During the trip, Hun Sen and ASEAN

  • National Assembly refutes EU resolution

    The National Assembly (NA) has hit back at a European Parliament resolution condemning the political and human rights situation in Cambodia, calling it another display of the Parliament’s “double standards”. Key points of the resolution include a warning that the Parliament could exclude the