- Share via
Cambodia’s banking sector is playing a pivotal role in accelerating economic development by empowering small and medium enterprises (SMEs), which employ over 70% of the country’s workforce. Through financial inclusion, innovative credit solutions, and targeted support for women entrepreneurs, the sector is laying the foundation for long-term resilience and inclusive growth.
Expanding Access to Finance for SMEs
Expanding access to finance is a top priority for the Association of Banks in Cambodia (ABC) and forms a core pillar of the National Financial Inclusion Strategy (NFIS) 2019–2025. One standout initiative is the Access to Finance (A2F) Program, supported by the Young Entrepreneurs Association of Cambodia (YEAC), ABC, and the Cambodia Microfinance Association (CMA). The program plays a critical role in advancing financial inclusion and contributes to Cambodia’s economic development by improving access to essential financial services.
By enhancing access to credit, loans, investment capital, and other financial tools, the A2F Program supports entrepreneurship and strengthens micro, small, and medium-sized enterprises (MSMEs), which are key engines of economic growth.
“Recognizing the role of MSMEs and women in economic development, financial institutions are prioritizing financing programs for MSMEs
and women-led businesses,” said Mr. Rath Sophoan, Chairman of the Association of Banks in Cambodia. “Over 350 women entrepreneurs have participated in the A2F Program’s financial literacy and business training initiatives, enabling them to scale their operations and compete in the marketplace.”
These initiatives align with Cambodia’s broader efforts to promote gender equity in business, ensuring women entrepreneurs receive the support needed to access credit, manage risk, and achieve long-term financial independence. The banking industry is also increasingly aligning with the Sustainable Development Goals (SDGs), investing in green financing projects, promoting ethical lending, and integrating environmental and social governance (ESG) principles into their strategies. These efforts support long-term, sustainable growth while ensuring financial institutions remain accountable to both businesses and consumers.
Innovative Financing Solutions
According to a report from the Credit Bureau of Cambodia (CBC) issued on January 30, 2025, the total outstanding balance for Small Business Credits grew by 1.3% to reach $35.14 billion by the end of the fourth quarter in 2024. To further stimulate SME activity and boost local economies, the state-owned Small and Medium Enterprise Bank of Cambodia (SME Bank) has allocated an additional $100 million to support SME funding. By the end of 2023, SME Bank had already disbursed approximately $490 million in loans to over 3,200 enterprises.
Despite these advances, MSMEs in Cambodia continue to face difficulties accessing the financing needed to expand their businesses. This is due to several interlinked factors, including a lack of collateral, limited formal financial records, and insufficient credit history. Moreover, many MSME owners have a limited understanding of financial products, services, and overall financial literacy.
In response to these challenges, Cambodia’s banking sector has introduced innovative mechanisms such as supply chain finance, a
collaborative effort between the National Bank of Cambodia (NBC) and the International Finance Corporation (IFC). This solution enhances cash flow management – particularly for export-oriented enterprises – by facilitating timely payments across supply chains.
Cross-border financing opportunities are also being strengthened. In June 2024, the National Bank of Cambodia and the Monetary Authority of Singapore (MAS) jointly launched the Financial Transparency Corridor (FTC). This initiative is designed to facilitate increased trade and investment flows between the two countries, offering direct benefits to SMEs operating in both markets.
Meanwhile, digital banking solutions, mobile platforms, and streamlined loan application processes are further improving access to financial services. By reducing the time, complexity, and documentation previously required, these innovations are helping entrepreneurs overcome traditional barriers to growth.
A Strong Future for SMEs
Despite macroeconomic headwinds such as decelerating credit growth, Cambodia’s banking sector remains firmly committed to placing SMEs at the heart of the national development agenda. By fostering responsible lending, strengthening financial inclusion, and leveraging international partnerships, Cambodia is paving the way for a more inclusive and resilient economy.
With continued collaboration between financial institutions, regulatory bodies, and development partners, SMEs are well-positioned to drive Cambodia’s economic progress, enhance the nation’s global competitiveness, and secure long-term financial stability for future generations.