Three financial sector bodies roll out new code of conduct

Three financial sector associations are launching the latest version of the code of conduct for banking and financial institutions on Friday. Photo provided

Three financial sector associations have jointly developed a new code of conduct aimed at ensuring transparency, building trust and enhancing customer protection in the Kingdom’s banking and financial sector.

The latest version of the Code of Conduct for Banking and Financial Institutions was officially signed and implemented on March 4 by the Banking Association of Cambodia (ABC), the Cambodian Microfinance Association (CMA) and the Cambodian Association Finance and Technology (CAFT) .

Formulated in response to the Financial Sector Development Strategy 2016-2025 and the National Financial Inclusion Strategy 2019-2025, the code aims to strengthen customer rights and protection, increase transparency in the banking and financial sector , stimulate sustainable and inclusive economic growth and prevent predatory lending to protect vulnerable customers, according to ABC President In Channy.

Channy said the new code will help the financial branches of government – particularly the National Bank of Cambodia (NBC) – in their aim to achieve stable, efficient and inclusive market diversification and meet the needs of financial service providers. nationals.

He predicted that the code would support the sustainability of Cambodia’s economic growth, increase people’s incomes and reduce poverty.

The code reflects the ambition of the Kingdom’s financial sector “to be strong, inclusive, focused on consumer needs and trust, and to set the ethical standards within the profession”, he said.

Channy added that the new code of conduct will be implemented through self-regulation by member institutions. They will have time throughout the year to review their internal codes or make additional suggestions regarding code compliance.

The first code of conduct for banking and financial institutions was established in February 2015 by 15 banks operating in Cambodia with the aim of strengthening customer and environmental sustainability guarantees within the Kingdom’s banking system, according to the president of the CMA, Sok Voeun.

Five years later, ABC’s Financial Inclusion Committee set out to establish a new version, in conjunction with the CMA, which was approved by ABC’s Board of Directors in July last year. , did he declare.

Voeun hailed the development of the new code of conduct as having been done “strategically and with foresight,” noting that it was in line with the National Financial Inclusion Strategy 2019-2025.

NBC Deputy Governor and Director General of Banking Supervision Rath Sovannarak expressed confidence that the code will be adopted as common policy by banking and financial institutions across Cambodia.

This would increase transparency in service delivery and customer protection, he said, “which will build good relationships and create fair and honest competition that will grow the banking and financial system inclusively.”

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