The Association of Banks in Cambodia (ABC) and the Cambodia Microfinance Association (CMA), with the support of the National Bank of Cambodia (NBC), have initiated an intensive workshop series titled "Strengthening Governance and Operational Excellence in the Banking and Finance Sector for Sustainable Growth."

The financial sector has maintained strong growth for over last decades. However, recent years have presented a unique set of challenges, including global inflationary pressures from international conflicts, rising fuel costs, and regional trade tensions. To address these hurdles—specifically the decline in credit quality and rising Non-Performing Loans (NPL)—this workshop serves as a strategic compass to ensure resilient operations for regional and branch managers of banks, microfinance institutions (MFIs), financial leasing institutions (FLI) and rural credit institutions (RCI).

The initiative is more than just a networking event; it is a vital platform for enhancing leadership and management capabilities. Participants gain direct insights from industry guardians, including the NBC, to ensure the entire sector grows sustainably and inclusively. Topics including economic insight, managing credit quality, latest regulations, governance, ethics, and dispute resolutions have been presented and discussed by industry leaders and regulators.

Addressing over 120 participants from banking and financial institutions (BFIs) in Zone 1—which encompasses Kandal, Kampong Chhnang, Kampong Speu provinces, and Phnom Penh—Mr. Rath Sophoan, ABC Chairman, stated that major financial institutions project slow and highly uncertain global economic growth in 2026, which could hamper economic expansion. In particular, he noted that sharp increases in fuel prices, alongside declines in trade and investment stemming from the Middle East conflict involving the US, Israel, and Iran, are directly and indirectly impacting Cambodia's open economy.

“The banking and finance sector is also under pressure from rising non-performing loans (NPLs) and a decline in public confidence following the liquidation of several banks in recent months. Additionally, the uncertainty surrounding the border dispute between Cambodia and Thailand poses a risk to Cambodia's economic activities,” Mr. Sophoan said. He added, “Therefore, strengthening governance, enhancing operational excellence, and reinforcing resilience within the banking and finance sector are top priorities that all of us here must focus on and pay close attention to. This is crucial for supporting sustainable and inclusive growth, especially amid this uncertain environment.”

Key Learning Outcomes for Participants:

• Economic Outlook: Deep dives into Cambodia’s 2026 economic updates and global banking trends.
• Credit Excellence: Sharing of best practices for strengthening credit quality and managing NPLs effectively.
• Regulatory Mastery: Clear understanding of new NBC regulations and industry self-regulations to avoid financial and reputational risks.
• Governance & Ethics: Building branch capacity through good governance principles and strict regulatory compliance.
• Alternative Dispute Resolution: Insights into the mechanisms of the National Authority for Alternative Dispute Resolution (NADR) and Financial Consumer and Protection Center (FCPC)

In her closing remarks, H.E. Dith Nita, Vice Chairwoman of the Cambodia Microfinance Association (CMA), said that the workshop provided a wealth of knowledge to participants through presentations, roundtable discussions, and knowledge sharing. She continued that despite external pressures from global conflicts like the war in Ukraine, and internal pressures from border disputes—both of which have reduced incomes for financial institutions and Cambodian households alike—the financial sector remains resilient.

She concluded that all stakeholders in the sector, especially the participants of this full-day workshop, must exert greater effort and utilize their newly acquired knowledge to overcome current challenges and ensure the sustainable growth of the sector.

Program Highlights

The full-day event was presided over by Dr. Lay Sokheng, Director General of Regulation and Financial Inclusion at the NBC; Mr. Rath Sophoan, Chairman of the ABC; and H.E. Dith Nita, Vice Chairwoman of the CMA.

The agenda featured technical presentations on governance, regulation, and credit classification within the banking and financial sector, alongside economic updates, complaint mediation and resolution mechanisms, and internal controls at BFI branches. The day concluded with a certificate presentation ceremony following a roundtable discussion on strengthening credit quality and responsible NPL management. To close the evening, participants gathered for a gala networking dinner.

Mr. Sang Makary, a Branch Manager at AMK Bank Plc—which recently transitioned from a microfinance institution (MFI) to a commercial bank—shared it was his first time attending such a workshop in his more than 10 years with the institution. He noted the insights gained regarding the banking and finance sectors would significantly enhance his capacity for future career growth, adding that if the knowledge is shared with other staff members, it will bring immense value to their respective BFIs.

“I am particularly interested in two points: first, the supervision process [by the NBC on BFIs], and second, the challenges and solutions in operational procedures, especially dispute mediation process by the NADR,” Makary said.

Nationwide Schedule and Coverage

The workshops are being rolled out across six key regions to ensure maximum accessibility for financial institutions: