The Credit Bureau of Cambodia (CBC) is celebrating a decade of providing the invaluable service of credit reporting in Cambodia, creating a financial system when giving out loans.
Chea Serey, Director General of the National Bank of Cambodia (NBC), said it has been 10 years since she helped establish not only the company but the credit bureau’s regulatory framework.
“But my involvement in the credit reporting system in Cambodia started in 2006, when the first NBC-owned credit reporting system was established,” Serey said.
Serey added that the hardest part and, in hindsight, the proudest part of the journey was to admit that the initial credit reporting system she had helped set up did not work and needed replacing.
“My big lesson learnt is to swallow my pride and do what is best for the financial system,” she said.
The CBC has now become a role model for credit bureaus set up in developing countries, while CBC’s performances and services offered are on par with credit bureaus from many developed economies, Serey said.
“I am very proud of what it has become, and a big congratulations to the board members and management team and staff of CBC,” she added.
Before 2012, the Association of Banks in Cambodia (ABC) voluntarily established Credit Sharing Information with less than 10 banks, said In Channa, President & Group Managing Director of ACLEDA, which was one of the members.
Because it is voluntary-based, member banks could not enforce or mandatory register the data of their customers into the Credit Information Sharing then, Channy added.
“There were some overlapping loans among banks and financial institutions, and could create some bad debts then,” Channy said in an email to Kiripost.
But after 2012 at the birth of the CBC, it significantly supported the ABC and Cambodia Microfinance Association (CMA), as well as the banking sectors as a whole, with many disciplines in finance and financial services since all customers registered, Channy said.
“CBC is like the doctor since it can help check the financial health of the banks/ FIs, and CMA's customers. CBC helps both the financial sector and their customers to save lots of time in finding information and checking the information of their customers,” Channy said.
He added that they can grow with quality as CBC requires information about the financial sector’s needs for its decision-making with regard to financial products and services for customers.
He said that under the NBC, it is mandatory for all banks, FIs and CMA to register customers in the CBC.
CBC hosted a celebration to mark its 10 year anniversary on Friday that was attended by NBC Deputy Governor Ouk Maly and other officials.