MICROCAPITAL BRIEF: Credit Bureau Cambodia Launched to Facilitate Information Sharing Among Banks, Microfinance Institutions

The Association of Banks in Cambodia (ABC) and the Cambodian Microfinance Association (CMA), two trade associations with a combined membership of 64 financial institutions, have formed a joint venture with New Zealand-based credit bureau developer Veda Advantage to launch the Credit Bureau (Cambodia) Company Limited (CBC), which will maintain a database of credit information intended to help banks and microfinance institutions (MFIs) in making “accurate loan decisions based on borrower’s positive and negative credit history” [1]. The bureau expects to benefit borrowers with faster processing times, lower interest rates for those with positive credit histories and protection from over-indebtedness. The credit bureau has been in the planning stages since 2008 and was originally envisioned to be launched in 2010.

Under an existing law intended to facilitate credit reporting and information sharing among banks and MFIs, a code of conduct has been developed that outlines what information banks and MFIs must share with CBC and enumerating the rights of consumers to ensure that all credit data is accurate. CBC estimates that the first consolidated credit reports will be available to member institutions in February.

By Nisha Koul, Research Associate

About Association of Banks in Cambodia (ABC): The Association of Banks in Cambodia (ABC) was formed in 1994 to represent Cambodia’s private banking sector. According to its website, as of January 30, 2012, ABC’s membership includes 29 commercial banks, 7 specialized banks and the members of the Cambodia Microfinance Association (CMA).

About Cambodian Microfinance Association (CMA): The Cambodian Microfinance Association (CMA) is a nongovernmental organization (NGO) that was established in 2004 by seven microfinance institutions (MFIs). According to its website, as of January 30, 2012, CMA has 28 active members. Its main function is to strengthen communication between MFIs and other groups such as government authorities, donors, creditors and investors.

About Veda Advantage: Veda Advantage is a private company that provides business solutions, data analytics and risk management tools for individuals and companies. Veda Advantage was established in New Zealand in 1967 and provides credit-related services, focusing on the development of credit bureaus. Through its international division, Veda Advantage has supported credit bureaus in Cambodia, New Zealand, Saudi Arabia, Singapore and Malaysia. Financial information on Veda Advantage is not currently available.

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 financial sector and issues currency.

Sources and Additional Resources:

[1] Credit Bureau Cambodia, News, “New Credit Bureau to make Cambodia more competitive,” http://www.creditbureaucambodia.com/cambodian-credit-news/new-credit-bureau-to-make-cambodia-more-competitive.html

MicroCapital.org story, May 10, 2011, “MICROCAPITAL BRIEF: National Bank of Cambodia (NBC), Supported by International Finance Corporation (IFC), Targets Multiple Borrowing by Microfinance Clients, Expects to Launch National Credit Bureau in 2011,” https://www.microcapital.org/microcapital-brief-national-bank-of-cambodia-nbc-supported-by-international-finance-corporation-ifc-targets-multiple-borrowing-by-microfinance-clients-expects-to-launch-national-credit-bureau-2/

MicroCapital.org story, May 27, 2011, “MICROCAPITAL BRIEF: Microfinance in Cambodia Grows 10%, Described as “Trap,” https://www.microcapital.org/microcapital-brief-microfinance-in-cambodia-grows-10-described-as-%E2%80%9Ctrap%E2%80%9D/

MicroCapital.org story, October 27, 2008, “MICROCAPITAL STORY: Cambodian Credit Bureau To Be Launched for Regulating Banking and Microfinance,” https://www.microcapital.org/microcapital-storycambodian-credit-bureau-to-be-launched-for-regulating-banking-and-microfinance/

MicroCapital Universe Profile: Association of Banks in Cambodia (ABC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Association+of+Banks+in+Cambodia+%28ABC%29

MicroCapital Universe Profile: Cambodian Microfinance Association (CMA), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Cambodian+Microfinance+Association+%28CMA%29

MicroCapital Universe Profile: Veda Advantage, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Veda+Advantage

MicroCapital Universe Profile: National Bank of Cambodia (NBC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=National+Bank+of+Cambodia+%28NBC%29

Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/

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