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Cambodia's bank and MFI associations pledge fairer collections and case-by-case restructuring, without timelines

Published Data as of CambodiaCreditMFI
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Key points

Implications for lenders

Lenders in Cambodia may need to show that collection conduct, restructuring decisions and complaint handling follow written standards, as both industry associations have now committed to them while the NPL ratio stands at 9.6%. Case-by-case restructuring can lengthen recovery times, so funding and provisioning plans may need to allow for slower cash collection. New lenders can build these standards into underwriting and collections from the start.

Implications

ExecutivesCollection scripts, restructuring criteria and complaint channels are now named industry commitments and may draw more scrutiny from the NBC and investors.
InvestorsCase-by-case restructuring may slow NPL resolution and recoveries, so asset-quality and provisioning disclosures deserve close reading in the next reporting season.
OperatorsCollection teams may need documented conduct standards, escalation rules and complaint logs that can show how each case was handled.

Facts

The statement: on 21 October 2026 the Association of Banks in Cambodia (ABC) and the Cambodia Microfinance Association (CMA) issued a joint statement on household indebtedness, reported by Xinhua. The associations acknowledge that some borrowers face financial difficulties under challenging economic conditions and list four commitments 1: to keep working with the National Bank of Cambodia (NBC), members and partners to enforce responsible lending standards; to improve debt collection practices and the treatment of customers; to support loan restructuring tailored to each borrower's situation; and to make fair and effective complaint-handling mechanisms easier to reach. The statement gives no timelines, enforcement steps or new rules.

The sector it covers: Xinhua's report, citing NBC data, counts 55 commercial banks 2 and 4.7 million credit accounts 3. Outstanding loans were USD 64.2bn at end-June 2026 4, +4.6% y/y.

Asset quality: the NBC's banking-system NPL ratio was 9.6% at end-June 2026 5, up from 8.4% at end-June 2025. Restructured loans were 7.5% of the portfolio 6, down from 8.3% at end-2025.

Analysis

The focus of the associations' joint statements has moved from collateral to collections. In August 2024 the ABC and CMA adopted rules on what lenders may take as security: no new loans against specified state, communal and protected land, no national ID cards or ID Poor equity cards as collateral, and no coercive sale of land already pledged. At that time loans stood at USD 58.9bn 7 and NBC data cited by Xinhua counted 4 million credit accounts 8. The 2026 statement addresses what happens after borrowers fall behind: collection conduct, restructuring and complaints.

The numbers explain the shift. The NPL ratio rose from 8.9% at end-2025 9 to 9.6% at end-June 2026, while the restructured share fell from 8.3% 10 to 7.5%. Fewer loans are being carried as restructured and more are classed as non-performing, which puts collection practices under more pressure. The statement also sits alongside the NBC–UN plan of 22 priority actions on over-indebtedness 11, which includes borrower protection among its areas.

Counterpoints and uncertainties

The statement is a voluntary industry commitment with no deadlines or published monitoring, so its effect depends on how members and the NBC follow it up. Wider restructuring can delay the recognition of losses if borrowers' incomes do not recover, and tighter collection conduct may lengthen recovery times. The figures cited are for end-June 2026; the NPL trend in the second half will show whether the pressure eases.

Key figures

  1. Commitments in the ABC–CMA joint statement: four commitments. Number of borrower-protection commitments listed in the joint statement of 21 October 2026. Association of Banks in Cambodia and Cambodia Microfinance Association members. Basis date: 21 Oct 2026. Source: Xinhua: Cambodia's banking, microfinance associations pledge borrower protection amid rising household debt concerns (2026-10-21)
  2. Commercial banks (NBC data cited by ABC and CMA): 55
    The statement gives no as-of date for the institution count; the basis date is the statement date.
    . Number of commercial banks, NBC data cited by Xinhua in its report on the ABC–CMA joint statement of 21 October 2026. Commercial banks licensed by NBC. Basis date: 21 Oct 2026. Source: Xinhua: Cambodia's banking, microfinance associations pledge borrower protection amid rising household debt concerns (2026-10-21)
  3. Loan accounts (NBC): 4.7 million
    NBC primary document not located on nbc.gov.kh; figure as reported by Xinhua from the NBC semi-annual report released 28 July 2026.
    . Number of loan accounts (not persons). Banks and financial institutions supervised by NBC. Basis date: 30 Jun 2026. Source: NBC semi-annual report H1 2026 (via Xinhua, 2026-07-28)
  4. Total loans (NBC, semi-annual): USD 64.2bn (+4.6% y/y)
    NBC primary document not located on nbc.gov.kh; figure as reported by Xinhua from the NBC semi-annual report released 28 July 2026.
    . Outstanding loans. Banks and financial institutions supervised by NBC. Basis date: 30 Jun 2026. Source: NBC semi-annual report H1 2026 (via Xinhua, 2026-07-28)
  5. NBC NPL ratio (semi-annual, latest): 9.6% (up from 8.4% at end-June 2025)
    NBC primary document not located on nbc.gov.kh; figure as reported by Xinhua from the NBC semi-annual report released 28 July 2026.
    . Non-performing loans as a share of total loans, banking system. Banks and financial institutions supervised by NBC. Basis date: 30 Jun 2026. Source: NBC semi-annual report H1 2026 (via Xinhua, 2026-07-28)
  6. NBC restructured loans ratio (semi-annual): 7.5% (down from 8.3% at end-2025)
    Stated by the NBC Governor at the 27 July 2026 first-half review; the NBC said these measures are being phased out gradually. Both this value and the end-2025 8.3% are restructured loans as a share of total loans; the end-2025 figure comes from the NBC Annual Report 2025 (estimates based on data to November 2025, 252,868 customers), while the H1 2026 count is in loan accounts.
    . Value of restructured loan accounts as a share of the total loan portfolio, per the NBC Governor. Banks and financial institutions supervised by NBC. Basis date: 30 Jun 2026. Source: AKP: Cambodia’s Banking System Remains Healthy Despite External Risks (NBC H1 2026 review, 2026-07-28)
  7. Total loans (NBC, as cited by ABC and CMA): USD 58.9bn. Loans to customers of banks and financial institutions at end-June 2024, NBC data cited by Xinhua in its report on the ABC–CMA joint statement. Banks and financial institutions supervised by NBC. Basis date: 30 Jun 2024. Source: Xinhua: Cambodia's banking, financial associations adopt new rules to strengthen business operations, customer protection (2024-08-17)
  8. Credit accounts (NBC, as cited by ABC and CMA, 2024): 4 million
    The statement gives no as-of date for the account count; the basis date is the statement date. Accounts, not persons.
    . Number of credit accounts at banks and financial institutions, NBC data cited by Xinhua in its report on the August 2024 ABC–CMA joint statement. Banks and financial institutions supervised by NBC. Basis date: 16 Aug 2024. Source: Xinhua: Cambodia's banking, financial associations adopt new rules to strengthen business operations, customer protection (2024-08-17)
  9. NBC NPL ratio (annual): 8.9% (up from 7.4% at end-2024)
    NBC Annual Report 2025, p. 45 (net NPL ratio 2.9%, provision coverage 67.5%). NBC labels its 2025 figures estimates based on actual data up to November 2025.
    . Non-performing loans as a share of total loans, banking system. Banks and financial institutions supervised by NBC. Basis date: 31 Dec 2025. Source: NBC Annual Report 2025 (published 2026-01-23)
  10. NBC restructured loans ratio: 8.3% (up from 3% in 2024)
    NBC Annual Report 2025, p. 45: KHR 21.1 trillion (USD 5.3 billion), about 8.3% of total loans, 252,868 customers, restructured under NBC forbearance measures for customers facing temporary financial difficulties; the report does not separate restructurings linked to the 2025 border conflict. 2024 value from the Graph 69 data label. NBC labels its 2025 figures estimates based on actual data up to November 2025.
    . Restructured loans as a share of total banking-system loans. Banks and financial institutions supervised by NBC. Basis date: 31 Dec 2025. Source: NBC Annual Report 2025 (published 2026-01-23)
  11. NBC–UN microfinance priority actions: 22. Priority actions agreed by NBC and UN agencies on over-indebtedness. Microfinance sector. Basis date: 25 Sep 2025. Source: Cambodia Investment Review: third NBC-UN convening (2025-09-25)

Sources

  1. Xinhua: Cambodia's banking, microfinance associations pledge borrower protection amid rising household debt concerns (2026-10-21)
  2. The Star (Xinhua): Cambodia's banking, microfinance associations pledge borrower protection amid rising household debt concerns (2026-10-23)
  3. Xinhua: Cambodia's banking, financial associations adopt new rules to strengthen business operations, customer protection (2024-08-17)
  4. UN in Cambodia: Joint statement, third NBC–UN high-level multi-stakeholder convening on microfinance (2025-09-24)primary
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A Japanese version of this article is available: 日本語版

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