The government on April 14 announced a full lockdown in the capital and neighbouring Takhmao town in Kandal province from April 15-28 to control the risk of spreading the novel coronavirus.

And the National Bank of Cambodia (NBC), the central bank, in an April 20 statement called on financial institutions to encourage the use of digital and mobile payments wherever possible, stressing the safety, convenience and speed that they offer.

Association of Banks in Cambodia (ABC) chairman In Channy talked to The Post’s May Kunmakara virtually about the overall performance of the financial sector during the lockdown period.

How did the ABC respond internally to the NBC’s April 20 announcement?

The ABC has been pushing to promote the use of cashless payments – we have a working group to handle this agenda item. The ABC always supports directions given by regulators and the government to boost

cashless and digital payments in society, especially during this period.

This is the way to contain the spread of Covid-19.

We strongly encourage our members and customers, the general public and business owners to settle and accept payments electronically via the digital platforms currently made available by our members.

Our community members have worked with – and will continue to work closely with – the NBC to make cross-institutional services more convenient, less costly and safer during this period.

The ABC would like to encourage the public to download and use the digital banking and payment platforms made available by our community members.

How are banks handling loan repayment issues? And how well have people embraced digital payment solutions during the lockdown?

Banks are providing automatic grace periods and especially extend them to people in lockdown areas.

Based on our observations, most of the people living in Phnom Penh are very familiar with digital payments.

The populace can bank without visiting any branches. People can transfer funds, settle all bills, top up any mobile phone, pay for delivery or online purchases and much more. They can get all their daily necessities on apps and make payments through banks’ mobile apps.

How’s the lockdown affecting business in the banking sector?

We haven’t observed any impact on banking and other financial institutions, and that’s because the government has prioritised this sector as a means of boosting economic activity and facilitating the daily living standards of the people in the capital and rural areas.

Under these circumstances, banks are still in operation to serve customers’ needs for financial services during the lockdown period and some are using financial technologies, digital platforms, and internet and mobile app banking to provide services where possible.

Taking this opportunity, the ABC and the Cambodia Microfinance Association would like to express our deep gratitude to the Royal Government of the Kingdom of Cambodia, the authorities of the Executive

Committee to Manage and Lead the Implementation of the Lockdown, the NBC and authorities at all levels to facilitate the issue of travel permits for bank staff to fulfil their duties of providing banking and financial services to the public, especially in areas that are on lockdown – Phnom Penh, adjacent Takhmao town of Kandal province and parts of Sihanoukville.

This interview has been edited for length and clarity.