In order to strengthen public trust in the banking system in Cambodia, the National Bank of Cambodia (NBC) called on the public to exercise increased caution, as there are currently many advertisements relating to illegal lending appearing in the Kingdom.

In an August 25 press release entitled “advertisement and illegal lending”, the NBC said that the banking and financial institutions which were licensed to conduct business by the NBC include commercial and specialised banks, deposit-taking microfinance institutions, microfinance institutions, financial leasing companies, and rural credit institutions. They are legal and formal institutions.

These institutions provide credit and other relevant services to companies, enterprises and individuals. They are under the control of the NBC and their clients are protected by law.

However, the NBC has observed some nefarious people openly advertising loans in various mediums, including online ads, through social media or through leaflets and flyers in public places. Lending by these unlicensed companies or individuals is against the law, especially the law on banking and financial institutions.

“In order to avoid being defrauded or any other consequences from obtaining informal credit and to maintain stability and public trust in the banking system, we call on the public to excise increased caution and encourage them use the services of formal institutions,” the letter added.

“We condemn all forms of informal dissemination of information and lending. Meanwhile, we are cooperating with the authorities to take legal action against any companies or individuals who engage in illegal activities,” it continued.