Phnom Penh, Cambodia, 12 June 2003 — A new training initiative organized by the Mekong Private Sector Development Facility (MPDF), is helping banks comply with government regulations concerning accounting practices. A second batch of 30 trainees, who received certificates yesterday from H.E Chea Chanto Governor of the National Bank of Cambodia (NBC), are now qualified to implement the government’s new Chart of Accounts – a comprehensive framework that standardizes how banks organize their savings, loans and other accounts.
According to government regulations designed to improve banking standards, banks must provide NBC, the government’s regulatory agency, with daily, weekly, monthly, semi-annual and annual reports on account activities. The new chart of accounts makes it easier for banks to create these reports and easier for NBC staff to review them.
Speaking at the closing ceremony, which was held at the National Bank of Cambodia, H.E Chea Chanto said that the new chart of accounts benefits many stakeholders. “The new chart of accounts will allow the banks to report in a transparent and consistent way, according to a system which is of international standard. Not only does it make it easier for our staff in the NBC to protect depositors’ interests by monitoring the banks, higher standards of accounting mean a more stable financial system, which will instill more confidence in Cambodia’s banks.”
In her speech at the closing ceremony, MPDF Cambodia’s Deputy Manager, Ms. Karla Quizon said that the accounting course will also benefit borrowers. “Increasing confidence in the banking system is important for economic development. As confidence in the banks rises, more people will be encouraged to deposit their money with them. This money will then be available to lend to small and medium enterprises, which are Cambodia’s best hope for growth and job creation.”
In a discussion after the closing ceremony, Ms Quizon added “Demand for this and other training courses is so great that we plan to run about 15 this year. MPDF is currently also running courses for loan officers at ACLEDA, a specialized bank. This is giving them training both in how to market loans and how to assess the risks involved in lending to prospective borrowers. Training programs such as these are critically needed in Cambodia. Most banks have been operating for less than ten years and bank employees have had few opportunities for high-quality training.”
Although MPDF is actively involved in providing bank training now, it is also working with the Association of Banks in Cambodia (ABC) to establish a bank training institute by the end of 2003 that will take over MPDF’s courses. The goal of this institute, says Ms. Quizon, is to offer international-standard training at Cambodian prices. “International trainers will initially develop courses, but they will work in close collaboration with Cambodian trainers. Once the courses are developed, the Cambodian trainers will continue to run them. Using local trainers is important not only to make the training affordable and available in Khmer, but also to ensure that courses are tailored to local needs.”
