Money Lenders Warned Over ID Collateral
The National Bank of Cambodia issued a warning to the Banks and Finance Institutions that continue to use ID cards and family books to secure credit. Those that continue will be subject to severe disciplinary sanctions and lose business licenses in line with Article 55 and 56 of the Law on Banking and Financial Institutions.
The National Bank of Cambodia has previously announced a ban on ID card or family book and residency book for subsequent credit guarantees in March 2016. However, some banking and financial institutions and some rural credit institutions still fail to comply with the notice.
The National Bank of Cambodia wishes to the public to be careful and avoid the use of ID card or family book and residential book for guaranteeing the loan.
See the announcements below for details:
