Networks

Background: Prior to the formal establishment of CMA, many microfinance institutions (MFIs) in Cambodia met in an informal manner to jointly address common issues in the sector. Some of the common issues they discussed were: lobbying government to liberalize interest rates and establishing an appropriate legal structure for microfinance institutions that could be regulated by the National Bank of Cambodia. In August 2002, an outcome of a meeting among different MFIs (AMRET – formerly EMT, HKL, Selianithih, Vision Fund Cambodia, CEB, PCA, and HI/ADC) was an agreement to set up a microfinance association. During the time period of August 2002-November 2003, a constitution for the association was drafted by a small sub-working group. In November 2003, the Cambodian Microfinance Association set up an organizational and governing structure including a General Assembly, Board of Directors, and elected General Secretary and Board Chairperson. Cambodia Microfinance Association (CMA) established in 2004 by 7 MFIs as CEB, AMRET, HKL, Maxima, Seilanithih, CREDO and PCA and on 18th October 2004, CMA formally registered at the Ministry of Interior as non government organization. The purpose of it is to ensure the prosperity and sustainability of microfinance sector in Cambodia. According the banking law in Cambodia (Chapter 22, Article 72) there is only scope for one professional association related to banking services permitted in Cambodia. The National Bank of Cambodia (NBC) has approved that CMA can operate as a sub-division of the Association of Bank in Cambodia (ABC) in accordance to the law. Currently, CMA is being formalized. As a sub-division, CMA is an institutional member of the ABC and can directly negotiate with NBC on relevant microfinance matters. Since 2004, CMA General Secretariat is comprised of a general secretary and a secretary. The general secretary is a part time volunteer and Secretary is a full time staff that support fund members. The general secretariat operates from a rented office space in one of member institutions. In the mid of year 2006, CMA has independent office at Mekong Bank compound first floor and has been two full time staff for operation as a general secretary and an admin/financial officer that supported fund by AFD and membership fee. In the past two years, CMA has grown from a membership association serving 7 members in 2004, to serving 11 members in 2005 and to serving 13 members in 2006. Vision: Cambodia residents have received financial service on time through a sustainability financial system. Mission: To facilitate microfinance operators in operation and strengthen communication with authorities, national-International donors, creditors and investors. Hide