To strengthen ethical practices within Cambodia’s financial sector, the Cambodia Microfinance Association (CMA) and the Association of Banks in Cambodia (ABC), have jointly introduced a Guideline on Ethical Standards for Credit Officers. This landmark initiative endorsed by the National Bank of Cambodia (NBC), aims to promote fair, transparent, and responsible lending practices throughout the industry, ultimately reinforcing trust between financial institutions and borrowers.
The guideline establishes a clear framework for ethical conduct, emphasizing integrity, accountability, and customer protection in all credit operations. Credit officers play a pivotal role in the financial ecosystem, and their interactions with clients—especially vulnerable and low-income borrowers—must prioritize fair treatment, transparency in loan terms, and responsible debt collection methods. These new standards directly address critical concerns such as over-indebtedness, coercive collection practices, and misleading information, setting a robust benchmark for professionalism across the sector.
The guideline, which comprises 9 chapters and 36 articles, outlines the crucial role of Banking and Financial Institutions (BFIs') management in ensuring its effective implementation. It emphasizes key principles such as client respect and harassment avoidance, integrity and honesty, confidentiality and privacy, and equity and non-discrimination. The guideline also stresses the importance of providing credit officers with the knowledge, skills, and capacity needed to serve clients effectively and equitably. This guideline is expected to be implemented in the fourth quarter of this year.
The Cambodia’s banking and financial sector, which includes banks, microfinance institutions, rural credit institutions, and financial leasing companies, has employed about 90000 staff. Approximately 75% of whom are credit-related staff. Credit Officers (COs) are crucial in banking and finance industry as they are vital for both the growth and stability of financial institutions in Cambodia. These front liners are responsible for driving loan sales while meticulously managing the associated risks, all while ensuring a positive and ethical experience for borrowers.
Why Stronger Ethical Safeguards Are Crucial
Given Cambodia’s rapid growth in financial inclusion, the need for stronger ethical safeguards has become increasingly critical. The guidelines align with global best practices while specifically addressing local challenges, ensuring that credit officers uphold their duty of care, confidentiality, and non-discrimination in their daily work.
Upon completion and dissemination of these ethical standards, banking and financial institutions are expected to integrate these principles into their training programs, internal policies, and monitoring systems to forster a culture of ethical lending. The guideline also encourages the establishment of public feedback mechanisms, enabling borrowers to report misconduct and ensuring greater accountability.
By promoting responsible finance, this initiative directly supports Cambodia’s broader economic development goals, safeguarding borrowers while enabling sustainable growth for banks and microfinance institutions (MFIs).
