Series 13: Strengthening Trust in Cambodia’s Banking Sector Amid Scam Crackdowns

A series of bank closures and anti-scam enforcement have challenged public confidence in Cambodia’s banking sector, highlighting the need to strengthen consumer protection, supervision, deposit safeguards, and dispute resolution.

They are seen as essential reforms to retain trust in an expanding digital financial sector, as well as the establishment of the Financial Consumer Protection Centre by the National Bank of Cambodia (NBC) to promote confidence in the system that problems can be resolved fairly and transparently.

Earlier this year, Cambodia intensified online scam crackdowns, leading to thousands of foreigners being deported, and some banks, allegedly connected to illegal activities, have been shut down.

Prince Bank Plc, whose owner Chen Zhi was arrested and deported to China, ceased operations on January 8, with the NBC appointing Morisonkak MKA Co., Ltd as liquidator. 

Following that, Panda Commercial Bank Plc had its license revoked after seven years due to sustained deterioration in its financial condition. On March 20, H-Pay’s license was revoked by NBC after an investigation found that the company violated regulatory requirements.

The incidents from January to March, along with hundreds of customers queuing at APD Bank in Boeung Kak to withdraw funds after service disruptions, sparked issues of confidence in the banking system.

Chea Serey, Governor of NBC, once told Kiripost that the revocation of licenses from non-compliant institutions is a necessary measure under Article 52 of the Law on Banking and Financial Institutions to preserve and strengthen the stability and reputation of the banking system.

She cited NBC’s withdrawal of licenses and liquidation of 16 banks and financial institutions in 2000 as an example, noting that the central bank has been prudent in ensuring compliance, and regularly reviewing relevant regulations.

“Despite the revocation of licenses of Prince Bank and Panda Bank, Cambodia’s banking system remains resilient, supported by strong capital positions and adequate liquidity,” she assured.

Conversely, Yasmin Siddiqi, ADB Country Director for Cambodia, said “weakened” trust in the financial system could have material macro‑financial consequences, including a “slowdown in credit growth and investment”.

“Households and firms become more cautious with their borrowing or savings and deposits,” she said, adding that it also increases household vulnerability, as “low confidence” often discourages households from using formal financial services.

“The risk is higher for lower‑income and rural households, where financial literacy remains limited,” she said.

Strengthening consumer protection and support healthy lending

Yasmin said Cambodia could sustain financial sector growth by strengthening consumer protection and supervision, improving transparency, dispute resolution, and digital safeguards, while supporting healthy lending and deeper capital markets.

She continued that a robust consumer protection framework, complemented by effective deposit protection, is essential to “maintaining trust” in the formal financial system, as digital finance and retail deposit-taking institutions expand.

It underscores the importance of established financial consumer‑protection functions within the NBC and the Financial Consumer Protection Centre, supported by a range of industry stakeholders, Yasmin said.

She explained that the centre, recognised as a key government policy reform under Subprogram 1 of the ADB’s Inclusive and Sustainable Finance Development Programme in Cambodia, serves as a centralised platform for complaint handling, mediation, and financial counselling.

“Effective, visible dispute‑resolution mechanisms increase trust by giving consumers confidence that problems can be resolved fairly and transparently,” she added.

In addition, sound deposit protection regulation plays a critical role in reinforcing financial stability by assuring depositors that their savings are protected, reducing the risk of panic withdrawals, and encouraging greater use of regulated financial institutions.

“Together, well-functioning consumer protection institutions and credible deposit protection arrangements improve market discipline and confidence without resorting to blunt credit controls that could constrain lending and undermine financial sector growth,” she said.

Industry Response And Strengthening Confidence

Industry players have echoed the importance of maintaining trust. Wing Bank, one of Cambodia’s leading digital banks, said recent enforcement actions highlight the importance of stronger consumer protection framework.

The bank said it remains fully compliant with National Bank of Cambodia (NBC) regulations and continues to safeguard customer funds through risk management, internal controls and ongoing monitoring.

Wing Bank recently received the Gold Level Client Protection Certification from MicroFinanza Rating (MFR), indicating full compliance with international client protection standards. The certification places the bank among a small group of emerging market institutions meeting global benchmarks in fair treatment, pricing transparency, data protection and responsible lending.

“Trust is the foundation of banking, especially as more customers adopt digital financial services,” said Dr. Dmytro Kolechko, CEO of Wing Bank, adding that maintaining confidence requires consistent industry-wide standards and accountability.

The bank also welcomed the establishment of the Financial Consumer Protection Centre, saying a centralised dispute resolution mechanism would help strengthen public confidence, particularly among first-time and digital users.

Founded as a mobile payment provider, Wing Bank has grown into a full-service commercial bank serving millions. Its network includes nearly 30 branches, over 12,000 agents, about 200 master agents and a digital platform supporting more than 200,000 merchants.

Outlook: Building Resilience Through Reform

On April 28, NBC’s governor Chea Serey met with Rath Sophoan, Chairman of the Association of Banks in Cambodia to discussed sector development priorities. These included promoting the use of the riel, strengthening consumer protection and governance, improving  professional conduct, expanding SME credit and addressing emerging challenges.

In a public update, Serey said they noted that the Financial Consumer Protection Centre will play a central role in managing complaints, providing legal guidance, and promoting financial literacy.

According to NBC’s annual report in 2025, outstanding loans rose 4.1 percent year-on-year to $63 billion, while deposits increased 14.7 percent to $65.7 billion, reflecting continued public confidence. Total assets reached $101.8 billion, up 9.5 percent, underscoring the system’s resilience.