Khmer Times News: The National Bank of Cambodia (NBC) and the International Finance Corporation (IFC) reiterated their commitment to strengthening consumer protection and financial literacy in the Kingdom, following a high-level meeting in Phnom Penh on Wednesday.
According to an NBC statement issued yesterday, Chea Serey, NBC Governor, met with a delegation from the IFC led by Towfiqua Hoque, IFC Country Resident Representative in Cambodia, at the Wat Phnom headquarters and discussed initiatives aimed at safeguarding consumers in the financial sector.
During the meeting, Towfiqua Hoque presented the IFC’s study report containing recommendations to enhance consumer protection, reaffirming the organisation’s support for priority actions adopted at the High-Level Multi-Stakeholder Dialogue facilitated by the NBC and the United Nations in Cambodia.
The IFC delegation also conveyed its continued commitment to investing in Cambodia’s financial sector and expressed readiness to collaborate further in promoting financial literacy across the country.
In response, Governor Serey welcomed the long-standing cooperation between the NBC and the IFC, noting the importance of sustained investment in the sector. The statement highlighted that the Royal Government has carried out a series of campaigns aimed at bolstering financial literacy and consumer protection. These efforts include the distribution of educational videos, the organisation of workshops, the promotion of the national currency, the integration of financial literacy into the national curriculum and the implementation of credit contract standards.
At the same time, the statement pointed to the ongoing challenges posed by informal lending and other consumer-related risks, stressing that strengthened cooperation among all relevant stakeholders is essential to ensure responsible provision and use of financial services.
The meeting underscored a shared objective: to build a more transparent, resilient and inclusive financial environment for Cambodian consumers as the sector continues to expand.
It is worth noting that NBC, in partnership with the International Finance Corporation (IFC), is moving ahead with the development of a sustainable finance taxonomy to guide investment in key economic sectors.
The Central Bank and the IFC jointly hosted a consultation workshop on the draft Taxonomy for Sustainable Finance in Cambodia in Phnom Penh on April 8, chaired by Yim Leat, NBC Deputy Governor.
The session brought together IFC representatives, sectoral authorities, banking and financial institutions, associations, investors and other stakeholders to exchange views and gather further input for the draft framework.
The taxonomy is being designed as a classification system for sustainable economic activities and investments, initially focusing on three priority sectors: energy, construction and transport.
Yim Leat underlined the NBC’s commitment to creating an enabling financial framework to mobilise the capital needed to meet the government’s climate ambitions.
“This ecosystem will contribute to addressing the impacts of climate change in Cambodia and help accelerate the transformation of the Cambodian economy into a green economy by strengthening the capacity of financial institutions and creating a financial ecosystem conducive to green investment projects, aiming to promote sustainable development,” he said.
He added that the NBC had completed a preliminary assessment of climate-related risks within the banking sector to better understand the potential physical and financial threats posed by climate events, ensuring that proportionate regulatory measures can be put in place.
The Central Bank has also finalised draft guidelines on environmental and social risk management to help banks ensure financing does not flow into harmful activities. In addition, Environmental, Social and Governance (ESG) principles have been integrated into NBC’s capital management, with a significant allocation directed towards sustainable assets.
“Recently, with the approval of the Prime Minister, NBC also established and led an inter-ministerial working group on green finance, which aims to serve as a national forum for consultation and decision-making on cross-sectoral issues related to sustainable financial policies,” Yim Leat said.
The NBC said the development of the taxonomy marks a key step towards strengthening Cambodia’s green finance ecosystem and supporting the country’s long-term sustainable development goals.
Source: https://www.khmertimeskh.com
