UPDATE

Bank association set to work with AmCham on sustainable finance

The Association of Banks in Cambodia (ABC) and the American Chamber of Commerce in Cambodia (AmCham) entered into a Memorandum of Understanding (MoU) on the implementation of the Cambodian sustainable finance principles in the Kingdom’s business community.

The MoU was signed on Thursday by ABC chairman In Channy and AmCham chairman Allen Tan.

ABC general manager Heng Koy told The Post that its members’ implementation of the principles left such a positive impression on AmCham that they resolved to hold their members to the same precepts.

“AmCham staunchly endorsed the implementation of our sustainable financing policies and plan to apply the roadmap to their members via the MoU.

“At the same time, the associations will jointly organize seminars to promote sustainable finance in provinces around the country and build awareness,” he said.

Tan told The Post that the MoU will reinforce cooperation between the associations in the context of sustainable finance.

He noted the increasing importance of sustainability as a dimension of global enterprise, specifically US businesses.

“As leaders in raising standards for business, American firms are looking to make improvements in this area locally.

“In terms of Cambodia, sustainable finance is being implemented at the national bank level down to commercial banks.

“We will see the potential for business to get preferred rates if they can demonstrate they are sustainable. In this way, it becomes not just ‘the right thing to do’, but also the more profitable thing to do.

“Under this MoU we will work together with [ABC] and our membership to run events such as seminars and workshops to help businesses understand how to incorporate sustainable finance into their business models,” Tan said.

He added that AmCham’s membership includes firms which are financial sector innovators, particularly in financial technology. He said the chamber supports US firms operating in Cambodia, as well as their investments in the Kingdom’s finance sector and will continue to do so.

“There are many players in the banking sector, but not yet a full American bank. Of course we would like to see full representation of an American bank, and I think that will come in due time.

“Most American companies operating in the Kingdom have expressed satisfaction with the service of the banking sector. We look forward to continuing digitisation and increasing rates of banking for all Cambodians,” Tan said.

There are 46 commercial banks, 15 specialised banks and 82 microfinance institutions (MFIs) operating in the Kingdom, a 2019 report from the National Bank of Cambodia said. There are also 248 rural credit operators, 15 leasing companies and 20 payment service providers.

Banks’ outstanding loan portfolio reached $24.5 billion last year while deposits stood at $25.5 billion. Among MFIs, loans reached $7.2 billion and deposits $3.9 billion.

Credit to: The Phnom Penh Post