Paper
Cambodia Microfinance Country Profile
Providing financial services in conflict-affected areas
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7 pages
This paper discusses the microfinance profile of Cambodia. It presents the salient features of Cambodian microfinance sector as:
- Only 45% to 55% of the estimated credit demand is being met;
- Early microfinance initiatives led by non-governmental organizations (NGOs) were credit-oriented;
- The sector has now acquired industry status with the entry of commercial banks, microfinance institutions and credit unions;
- It is dominated by twelve main players, and approximately 60 unregistered providers;
- Competition has led to a reduction in the interest rate;
- The delivery method is shifting from village banking to individual and group lending;
- Past banking record and limited supply of services has resulted in low level of savings;
- The biggest challenge is to expand outreach in remote rural areas.
Further, the paper discusses the existing regulatory framework, and also the funding sources:
- Wholesale funds - Asian Development Bank (ADB);
- International funds and grants - Microfinance Alliance Fund, SIDI, Triodos, BlueOrchard, etc.;
- Equity participation - International investors.
Finally, the paper concludes by describing the Cambodian Microfinance Association (CMA) that seeks to support the sector by:
- Sharing and disseminating information;
- Setting performance standards;
- Building capacity.
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