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LOLC Cambodia - The Commitment to Client Protection Comes from the Top

24th October 2023, Mr. Sok Voeun, Chief Executive Officer, and Mr. Tun Korng, Shareholder Representative of LOLC (Cambodia) Plc., obtained the certification for participating in “The CEOs and Shareholders/Board Members Training Workshop on the Role of Governance in Ensuring Commitment and Effective Implementation of Client Protection in Banks and Financial Institutions”. This workshop required top management, shareholders and/or board members of the Banks and Financial Institutions (BFIs) to participate aiming to promote good governance and strengthen client protection mechanisms, focusing on: 1/-strengthening the leadership and technical capacity of the management and staffs 2/-the structure of leaderships and clear management system 3/-Transparency of the institutions’ information 4/-Involvement of all stakeholders, BODs, and CEOs and 5/-Investment in human resource development.

LOLC’s top management and shareholders/Board of Directors have been focusing the commitment to client protection as our strategic priority. That’s why, no sooner the LOLC Group took over the management of the company in 2014, one of the first measures taken was to ensure that the company adopts Client Protection Principle (CPP). In 2015, LOLC Cambodia became the first organization in Cambodia to obtain this certification and have maintained the required standards and its certification to-date. In February 2022, LOLC Cambodia was awarded the Gold Level certification of achievement from Cerise and SPTF.

LOLC has integrated Client Protection Principles into our risk management process, strengthening credit quality, ensuring the implementation of client protection along with the loan process. LOLC has implemented a Code of Conduct (CoC) in which all employees undergo regular training and compliance is monitored. We do not expose ourselves to business activities as stated in the exclusion list. A rigorous cash-flow analysis of clients is conducted as the main part of the credit evaluation. To avoid risks of over-indebtedness, all applications for credit facilities are checked with the Credit Bureau of Cambodia to supplement rigorous in-person loan evaluations. In addition, LOLC Cambodia closely monitors the trend of over-indebtedness level and strictly adhere to the CMA and Association of Bank in Cambodia (ABC) Self-Regulation pertaining to Lending Guidelines (via multiple lending rules and refinancing rules).

On top of this, LOLC Cambodia has been actively supporting the sector’s initiatives in promoting and strengthening responsible lending and client protection. LOLC has sent its field staff and branch management to join “Workshop on Responsible Lending”. Also, all branch management have participated in the “Regional Workshop on Strengthening Effectiveness and Ethical Branch Management”. These workshops aim to provide individuals front line staff and branch management with a strong understanding of the ethical and consumer protection principles key to sustainable financing and financial inclusion.

LOLC also participated in the United Nations Global Compact (UNGC), which reflects LOLC’s commitment to sustainability by advancing sustainable development goals and responsible business practices. Also, LOLC Cambodia can alignment its strategies with the UNGC's universal principles on human rights, labor, environment, and anti-corruption.

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