Cambodia’s central bank yesterday announced a decision to revoke the operating licences of 11 rural credit operators for failing the abide by regulations.
“The reasons are diverse across the 11 institutions,” Chea Serey, director general of National Bank of Cambodia (NBC), said in an email yesterday, without giving further details.
“The closure of these 11 operators won’t have any impact on the industry as their size is negligible.”
Yun Sovanna, general secretary of the Cambodia Microfinance Association, whose members include both microfinance institutions and rural credit operators, said the 11 credit operators sanctioned by the NBC were not CMA members.
Sovanna said that the CMA had advised its members to comply with all laws and regulations.
“Failing to comply may attract sanctions, penalties or licence withdrawal,” he said. “I believe the NBC considered the situation well before taking this action, and, in my opinion, it is positive for the market that those who were seriously non-compliant were sanctioned.”