The Association of Banks in Cambodia (ABC) and the Cambodia Microfinance Association (CMA) have introduced new regulations to enhance responsible business practices and consumer protection.
The new rules are designed to promote a sustainable and ethical financial environment while safeguarding consumers’ interests.
The ABC and CMA emphasize the importance of creating a “solid, sustainable, highly responsible banking and financial sector with robust consumer protections.”
The regulations target the handling of collateral and assessing borrowers’ repayment capacities, ensuring that vulnerable groups are not subjected to predatory lending.
One of the key provisions is the prohibition against using certain types of collectively-owned or state-owned land as collateral for new loans.
Protected lands such as wildlife sanctuaries, corridor lands, and other designated areas are also off-limits as security for loans.
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