Logo of Phnom Penh Post newspaper Phnom Penh Post - CMA issues code of conduct for local MFIs

CMA issues code of conduct for local MFIs

Party flags flutter atop a CPP billboard in front a microfinance office in Kandal province’s Takhmao town yesterday.
Party flags flutter atop a CPP billboard in front a microfinance office in Kandal province’s Takhmao town yesterday. Pha Lina

CMA issues code of conduct for local MFIs

The Cambodia Microfinance Association (CMA) issued an announcement yesterday which further attempts to distance lending institutions from the realm of politics following an aggressive push by the government earlier this year to differentiate microfinance institutions (MFIs) from state-run institutions ahead of the commune elections.

The announcement by CMA serves as a new code of conduct for its 87 members, aimed at strengthening the integrity of microfinance institutions (MFIs) in light of government scrutiny.

Yun Sovanna, general secretary of CMA, explained that the announcement is meant to inform both key stakeholders and the public of the importance of the sector.

“We also want to emphasise the obligation to borrowers and the apolitical nature of the MFIs,” said Sovanna. “As a commercial and non-political entity, our staff should not engage in politics during work hours and it is common sense they cannot use their MFI for political advantage.”

The announcement condemned several unethical principles, including the acceptance of identification cards and family books as collateral for loans, the attempt of some staff to seek profits by claiming their MFIs are public institutions, and the use of logos which allude to specific political parties or affiliations.

The government has spearheaded a series of regulatory changes regarding the MFI sector this year, most notably by imposing an 18 percent interest rate cap on new loans.

MOST VIEWED

  • Volunteer scheme to foster ‘virtuous’ humanitarian spirit

    A senior education official said volunteer work contributes to solidarity and promotes a virtuous humanitarian spirit among the youth and communities. Serei Chumneas, undersecretary of state at the Ministry of Education, Youth and Sport, made the comment during the opening of a training programme called “

  • Chinese firms unveil preliminary results on metro, monorail for capital

    Minister of Public Works and Transport Sun Chanthol and representatives from China Road and Bridge Corp (CRBC) and its parent company, the state-owned China Communications Construction Co Ltd (CCCC), met on June 24 for talks on results of the firms’ preliminary study on a potential metro

  • ACLEDA, WU to enable global money transfers

    Cambodia's largest commercial bank by total assets ACLEDA Bank Plc and global money transfer firm Western Union (WU) have partnered to offer customers cross-border money transfers to 200 countries via “ACLEDA mobile” app. In Channy, president and group managing director of ACLEDA, said the June 22 agreement

  • Walmart plans to diversify stock of Cambodia goods

    Walmart Inc, the world’s biggest retailer, on June 22 reiterated recent plans to scale up and greatly diversify its purchases of Cambodian products, according to the labour ministry. This came during a virtual working meeting between Minister of Labour and Vocational Training Ith Samheng and

  • Cambodia detects new Covid cases after 52 days: PM

    After 52 days of zero new Covid-19 cases, Cambodia has now detected new infections, according to Prime Minister Hun Sen. In his special audio address to the nation late on June 28, Hun Sen said the new cases were detected on people who had undergone PCR tests

  • Cotton club growing in Battambang

    The global market for “vegan leather” – materials that act as alternatives to traditional leather that can be synthesised from cork, apple peels, cactus, recycled plastic, grape pomace and pineapple leaves, among other things, and supposedly require no chemicals or water to produce – is expected to