The workshop on orientation and reinforcement of the Banking and Financial Institutions' Code of Conduct (BFI CoC) held in Phnom Penh on January 18, 2023. PHOTO SUPPLIED
Prominent market players have affirmed that they are on board with the Banking and Financial Institutions' Code of Conduct (BFI CoC) and associated Lending Guidelines, as well as their underlying objective to drive trust and professionalism in the field, as these sets of rules go into “full implementation” for members of three top industry bodies.
On March 4, the Cambodia Association of Finance and Technology (CAFT) had launched the latest version of the BFI CoC, for interim implementation, in collaboration with the Association of Banks in Cambodia (ABC) and the Cambodia Microfinance Association (CMA).
Speaking at a January 18 workshop on the code, ABC chairman Raymond Sia Say Guan highlighted the importance of industry actors’ actions as well as their abilities to build integrity and trust with customers and the general public, and spoke out against condoning overly aggressive marketing tactics and disreputable practices, according to a joint statement.
“As bankers, we need to reinforce these values and strive for excellence in everything we do,” the Malaysian was quoted as saying.
“I am pleased to announce that the [BFI CoC] and the Lending Guidelines are now put into full implementation for all members of ABC, CMA and CAFT,” he said.
“I would also wish to thank all members that have actively participated in the preparation and implementation of the code, and who have embedded it into their internal policy and procedure,” Sia added.
Addressing more than 600 attendees at the event, CMA chairman Sok Voeun said that, during the interim implementation, his association held complementary workshops in a bid to boost efficiency, sustainability, capacities, professionalism and ethics, the statement noted.
He shared that more than 800 managers of microfinance institution (MFI) branches nationwide attended at least one of these workshops, as one of the target audiences.
“The three associations’ members have made efforts to comply with the [BFI CoC],” the statement quoted Voeun, who doubles as the chairman of ABC’s Financial Inclusion Committee, as saying.
“Although it is not easy, for the efforts to contribute to the strengthening of the banking system and customer protection, all institutions strive to improve their systems and policies to ensure that their institutions fully comply with the rules set out in the code,” he added.
He disclosed that the three bodies are to set up a monitoring system to ensure that members implement the code’s requirements in a transparent and accountable way.
Also at the event, National Bank of Cambodia (NBC) first deputy director-general for banking supervision Kith Sovannarith lauded the ABC, CMA and CAFT for initiating and adopting the BFI CoC and Lending Guidelines, the statement said.
A high level of involvement from all stakeholders will be needed to meaningfully improve market conduct, protect consumers and thereby ensure stable and sustainable banking sector development, he stressed.
“I requested all financial institutions to promote consumer protection and considered this task as the main priority and necessary, and to ensure that all competition and operation [be managed] professionally and responsibly,” Sovannarith was quoted as saying.
The statement added that the BFI CoC was initiated and adopted “in line with the National Financial Inclusion Strategy 2019-2025”, and is designed “to ensure sustainable development and resilience, promote and strengthen consumer protection, and enhance ethics and professionalism in banks and financial institutions”.
On December 11, the NBC reported that outstanding loans extended by financial institutions to the private sector in all economic domains grew by 23.6 per cent on a yearly basis to 216 trillion riel as of June 30, which the central bank converted to $53.1 billion.
