Cambodia Microfinance Country Profile

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.