The National Bank of Cambodia (NBC) has rejected the registration requests of 12 rural private lenders and revoked the licences of 11 others, according to a statement on Wednesday.
Claiming the message was meant to keep the public in the loop, the NBC said the rejections were due to lenders not meeting institutional requirements.
Kea Borann, CEO of AMK Microfinance Institution Plc, and a director at Cambodia Microfinance Association, said on Thursday his organisation supported the NBC’s move as it would help strengthen the country’s finance sector.
“The NBC is doing the right thing based on rules and regulations. I believe these institutions cannot meet the requirements set by the National Bank and this measure will make the financial sector in Cambodia even more robust,” he said.