AKP Phnom Penh, June 16, 2025 --

Cambodia's financial sector is undergoing a significant transformation, with a strong focus on sustainability, responsibility, and community empowerment.

Financial institutions, including commercial banks and microfinance institutions (MFIs), are increasingly adopting ethical lending practices and environmental, social, and governance (ESG)-aligned financing to foster inclusive economic development.

The movement gained traction in 2019 with the introduction of the Cambodian Sustainable Finance Principles (CSFP) by the Association of Banks in Cambodia (ABC), supported by the National Bank of Cambodia (NBC) and the Ministry of Environment, according to a press release issued on June 16.

These voluntary guidelines help financial institutions integrate ESG considerations into their lending decisions.

Since their introduction, the number of financial institutions adhering to these principles has risen from 48 to 74 members in 2024, demonstrating a growing commitment to rigorous risk assessments concerning climate, governance, and social impacts.

This expanded adoption includes 57 commercial banks and 8 specialised banks, alongside key industry associations.

"As responsible providers, we are committed to ensuring financial access while contributing positively to the well-being of the population, always upholding the principles of transparency, fairness, and social responsibility," said ABC Chairman Mr. Rath Sophoan.

Leading commercial banks like ACLEDA Bank, Canadia Bank, Maybank Cambodia, and ABA Bank are championing responsible finance through initiatives such as integrating ESG risk factors, promoting digital and community-oriented banking, enhancing financial literacy, and supporting rural communities.

MFIs under the Cambodia Microfinance Association (CMA) are also dedicated to this shift. AMK Microfinance serves a large rural and female client base, while LOLC Cambodia recently received an award for gender equality and environmental sustainability and plans to issue a US$50 million sustainability bond. Amret Microfinance is contributing to the economy by supporting micro and small farmers and businesses.

Furthermore, CMA's partnership with the Credit Guarantee Corporation of Cambodia (CGCC) aims to increase credit access for MSMEs, especially women entrepreneurs in rural areas. National efforts, co-chaired by NBC and the United Nations, are strengthening responsible lending standards and client protection.

"Digital payments and inclusive finance are transforming lives in Cambodia, especially in underserved areas. By promoting access and accountability, we are building a more inclusive economy that empowers individuals and protects communities," said CMA Chairwoman Ms. Dith Nita.

The National Financial Inclusion Strategy 2019–2025 provides the broader framework for this transformation, aiming to integrate more Cambodians—especially women, farmers, and rural families—into the formal financial system. Complementing this is the Sustainable Finance Roadmap, which helps financial institutions align with national climate goals and global development targets.

Additionally, the Financial Consumer Centre—co-led by ABC and CMA—now provides a dedicated avenue for resolving borrower disputes and improving trust in the financial system.

This mechanism supports the enforcement of Cambodia’s Lending Guidelines and the sector-wide Code of Conduct, which prohibit unethical lending practices and promote client welfare.

Together, Cambodia's banks and MFIs are not only financing growth but doing so responsibly. Whether it's investing in ESG-aligned infrastructure, providing affordable credit to rural entrepreneurs, or ensuring every borrower understands their rights, the sector is proving that responsible finance is not just possible in emerging economies—it’s essential.

As global investors increasingly prioritise transparency, sustainability, and long-term impact, Cambodia's financial sector is steadily emerging as a model for Southeast Asia.

By Chea Vannak