Cambodia’s banking and microfinance associations have pledged to strengthen responsible lending, improve debt collection practices and expand consumer protection as concerns over household indebtedness grow alongside a rise in non-performing loans across the banking system.
In a joint statement issued on October 21, 2026, the Association of Banks in Cambodia (ABC) and the Cambodia Microfinance Association (CMA) reaffirmed their commitment to financial literacy, fair borrower treatment and more effective complaint resolution. The statement comes as the National Bank of Cambodia (NBC) reported that the banking system’s non-performing loan (NPL) ratio reached 9.6% in June 2026, up from 8.4% in June 2025.
Key Facts
Banking NPL ratio: 9.6% in June 2026, compared with 8.4% a year earlier.
Outstanding loans: $64.2 billion in June 2026, up 4.6% year-on-year.
Customer deposits: $64.4 billion, up 4.4% year-on-year.
Responsible Lending Certification Programme: More than 48,000 participants reached.
Industry training: 366 chief executives, board members and shareholders, plus more than 1,123 branch managers, received governance and consumer protection training during 2025–2026.
Consumer complaint services: The Financial Consumer Protection Centre has managed the complaint hotline previously operated jointly by ABC and CMA since July 2025.
Policy priorities: Responsible lending, borrower affordability assessments, fair debt collection, transparent loan contracts and case-by-case loan restructuring.
ABC and CMA Reaffirm Commitment to Responsible Lending
ABC and CMA acknowledged that access to formal financial services has supported livelihoods, businesses and economic development. However, they also recognized that some borrowers have encountered financial difficulties amid challenging economic conditions.
The associations said they take concerns over household indebtedness and borrower welfare seriously, emphasizing the need for fair treatment and practical solutions for customers struggling to meet repayment obligations.
Working with the NBC, member institutions and development partners, the two associations have introduced initiatives intended to improve lending standards, strengthen industry accountability and protect financial consumers.
These measures include a Code of Conduct for banking and financial institutions, lending guidelines to help credit officers assess repayment capacity, and standardized loan contracts designed to improve transparency and clarify borrowing terms.
The associations stressed that establishing policies is not enough. Consistent implementation and tangible benefits for customers will be necessary to improve public confidence in the financial sector.
Responsible Lending Training Reaches Thousands of Participants
The associations highlighted their Responsible Lending Certification Programme, which has reached more than 48,000 participants.
During 2025–2026, governance and consumer protection training also covered 366 chief executives, board members and shareholders, along with more than 1,123 branch managers nationwide.
These programmes are intended to strengthen professional standards and improve how financial institutions assess loan applications, communicate contractual obligations and manage relationships with borrowers.
Effective implementation is particularly important when lending decisions are made. Credit officers need to consider borrowers’ repayment capacity, while managers and executives must ensure that internal procedures support appropriate oversight and fair treatment.
Standardized loan contracts can also help customers understand interest rates, repayment schedules, fees and other obligations before entering into an agreement.
Safeguards Target Risks Facing Vulnerable Borrowers
ABC and CMA said additional safeguards have been introduced to protect vulnerable borrowers.
The measures include:
Restrictions on accepting certain state, protected and collectively held lands as collateral for new loans.
A prohibition on accepting personal identification documents as collateral.
Enhanced repayment-capacity assessments for low-income households.
These safeguards are intended to reduce risks associated with lending arrangements that could expose borrowers to financial hardship or place essential documents and protected assets at risk.
Affordability assessments are particularly important for households with limited or irregular incomes. A loan that appears manageable under favorable conditions may become difficult to repay if income falls or essential living expenses increase.
The statement did not provide figures showing how many borrowers have benefited from these safeguards or how much they have reduced repayment difficulties.
Financial Consumer Protection Centre Provides Complaint Support
The associations also highlighted the Financial Consumer Protection Centre (FCPC), which operates independently of ABC and CMA.
The centre provides consumer guidance, financial education and complaint mediation. Since July 2025, it has managed the consumer complaint hotline previously operated jointly by the two associations.
An accessible complaint mechanism can help borrowers seek clarification, raise concerns about lender conduct and pursue mediation when disputes arise.
Its effectiveness, however, depends on more than the existence of a hotline. Timely responses, clear explanations and appropriate follow-through are also important to ensuring that consumers receive meaningful support.
ABC and CMA said they would continue working with the NBC, financial institutions and relevant partners to improve customer treatment and strengthen responsible lending practices.
NBC and UN Dialogue Identifies 22 Priority Actions
The joint statement also highlighted a high-level, multi-stakeholder dialogue on microfinance in Cambodia, co-organized by the NBC and the United Nations.
The process identified 22 priority actions to strengthen responsible finance and consumer protection.
ABC and CMA said their initiatives complement the NBC’s regulatory and supervisory measures. They also acknowledged that further work is needed to address shortcomings and strengthen public confidence.
The associations pledged to improve the implementation of responsible lending standards, strengthen debt collection and customer treatment practices, and support appropriate case-by-case loan restructuring for borrowers experiencing repayment difficulties.
Restructuring may offer a practical option for borrowers facing financial pressure, depending on their circumstances and the terms agreed with their lenders. The associations’ commitment does not mean that every borrower automatically qualifies for restructuring.
Cambodia’s Banking NPL Ratio Reaches 9.6%
The consumer protection commitments come as Cambodia’s banking sector reports rising non-performing loans.
According to an NBC biannual report cited by Khmer Times, outstanding loans increased 4.6% year-on-year to $64.2 billion by June 2026. Customer deposits grew 4.4% to $64.4 billion over the same period.
The banking system’s NPL ratio rose from 8.4% in June 2025 to 9.6% in June 2026.
An increase in the NPL ratio indicates that a larger proportion of banking loans has become non-performing. However, the figures alone do not establish the causes of the increase or identify how much of the deterioration came from household borrowing, business lending or particular borrower categories.
Loan growth and rising non-performing loans can occur simultaneously. Assessing underlying risks requires a closer examination of loan composition, borrower repayment performance and financial institutions’ risk-management practices.
The reported figures nevertheless underscore the importance of responsible credit assessment, transparent lending and appropriate support for borrowers experiencing repayment difficulties.
Cambodia’s Financial Sector Structure
As of mid-2026, Cambodia’s financial infrastructure comprised:
| Institution type | Number |
|---|---|
| Commercial banks | 58 |
| Deposit-taking microfinance institutions | 3 |
| Non-deposit-taking microfinance institutions | 85 |
| Specialised banks | 7 |
| Rural credit institutions | 88 |
This network serves households and businesses with different financial needs, from personal borrowing to financing for business operations and expansion.
The breadth of the sector makes consistent consumer protection important across different types of financial institutions. Borrowers need clear loan terms, appropriate affordability assessments and accessible complaint channels, regardless of which institution provides their financing.
Angkor Times Analysis
Cambodia’s latest responsible lending commitments highlight the challenge of balancing access to finance with borrower protection.
Credit can support household needs, business investment and economic activity. But when lending decisions do not adequately account for repayment capacity, borrowers may face financial stress while lenders face rising defaults and deteriorating asset quality.
The increase in the banking NPL ratio from 8.4% to 9.6% between June 2025 and June 2026 makes the implementation of responsible lending standards particularly relevant. The reported figures do not, however, establish that household debt alone caused the increase.
Three areas will be important in determining whether the commitments deliver results.
First, responsible lending standards must influence actual credit decisions. Training and certification are useful, but their effectiveness depends on whether lenders consistently assess income, existing debt and repayment capacity before approving loans.
Second, debt collection and restructuring practices must be fair and practical. Borrowers experiencing genuine repayment difficulties need clear communication and a process for discussing realistic options. Case-by-case restructuring may help in appropriate circumstances, but outcomes should be evaluated rather than assumed.
Third, consumer protection must be measurable. Tracking complaint volumes, resolution times, recurring issues, restructuring outcomes and compliance with borrower safeguards could help assess whether formal commitments are improving customer experiences.
The financial sector’s credibility depends not only on expanding access to credit but also on ensuring that lending is transparent, suitable and sustainable. Consistent implementation by financial institutions, alongside NBC supervision, will be essential to maintaining public confidence.
Frequently Asked Questions
What are ABC and CMA?
The Association of Banks in Cambodia represents the banking industry, while the Cambodia Microfinance Association represents microfinance institutions. Both work with regulators and other stakeholders on financial-sector development and industry practices.
What was Cambodia’s banking NPL ratio in June 2026?
The ratio reached 9.6% in June 2026, compared with 8.4% in June 2025, according to the NBC figures cited by Khmer Times.
What borrower protection measures have been introduced?
Measures include restrictions on accepting certain categories of land as collateral for new loans, a prohibition on accepting personal identification documents as collateral, improved affordability assessments for low-income households, standardized loan contracts and responsible lending guidelines.
Where can consumers seek financial guidance or raise complaints?
The Financial Consumer Protection Centre provides consumer guidance, financial education and complaint mediation. It has managed the complaint hotline previously operated jointly by ABC and CMA since July 2025.
Will borrowers facing repayment difficulties receive loan restructuring?
ABC and CMA have pledged to support appropriate case-by-case restructuring for borrowers experiencing repayment difficulties. Eligibility and possible arrangements depend on individual circumstances and the lender’s assessment.
Does the rising NPL ratio prove that household debt caused the increase?
No. The reported NPL figures show an increase in non-performing loans across the banking system but do not establish the specific causes or quantify the contribution of household borrowing.