MICROCAPITAL BRIEF: Asian Development Bank (ADB) Provides Loan To Strengthen Regulatory Environment Of Cambodia’s Financial Sector, Microfinance Institutions To Accept Deposits

The National Bank of Cambodia (NBC) recently received a USD 10 million loan from the Asian Development Bank (ADB) in order to stregthen the legal and regulatory environment surrounding the country’s financial sector.  Samiuela Tukuafu, a Senior Financial Sector Specialist with the ADB, states that the funds will be used to “improve the legal and regulatory environment, to boost sector capacity, to improve disclosure standards and financial transparency, and to build up infrastructure.” In part, the reforms target the development of the microfinance sector by permitting microfinance institutions to take deposits from the public and receive credit from domestic commercial banks. However, the reforms go beyond the microfinance sector with additional reforms targeting the development of bank supervision capacity and the establishment a commercial dispute resolution mechanism.

About Asian Development Bank (ADB):
Established in 1966 and headquartered in Manila, the Philippines, the Asian Development Bank (ADB) is a regional development bank that consists of sixty-seven members, of which forty-eight are based in the region and nineteen are based outside the region.  The ADB has three strategic agendas: to foster inclusive growth, to facilitate regional integration and to ensure evironmentally sustainable growth.  To accomplish these objectives, the ADB uses loans, technical assistance programs, grants and direct assistance in the form of equity investments, guarantees and credit to private companies in member countries. ADB website: http://www.adb.org/default.asp
 
About National Bank of Cambodia (NBC):
Established in 1954, the National Bank of Cambodia (NBC) is the country’s central bank.  Among its functions, the NBC establishes and monitors the country’s monetary policy, supervises and regulates the country’s financial sector and issues the country’s currency. NBC website: http://www.nbc.org.kh/index.asp
 
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