Banks and MFIs asked to reduce fees, waive penalties on clients

Banks and MFIs asked to reduce fees, waive penalties on clients

The National Bank of Cambodia has requested financial institutions to reduce credit-related fees and lift fines until the end of December 2020, according to an NBC letter.

The National Bank of Cambodia (NBC) has appreciated financial institutions for its good collaboration and good adherence to previous NBC measures.

The statement signed by Rath Sovannorak, NBC’s Director General of Banking Supervision, read that “In a situation where the world, as well as the Kingdom, is at risk of the outbreak of  COVID-19, the Central Bank seeks the understanding of all banking and financial institutions to offer more customer preferences to ease their burdens during this difficult time, such as reducing credit-related fees and/or waiving any penalty on their clients from the date of this letter to the end of December 2020.

At the same time, the National Bank of Cambodia has requested the leaders of the Banking and Financial Institutions to cooperate effectively.

On March 27, NBC issued a directive to all banks and financial institutions to restructure loans in order to maintain financial stability, support economic activity and ease the burden of debtors facing major revenue declines who may find it difficult to repay loans during the ongoing viral outbreak.

This directive requires banks and financial institutions to establish a policy and procedure on loan restructuring amid the Coronavirus outbreak and have it approved by the board of directors.

Credited: Khmer Times