Legal Document

N° B-7 -02-49 Prokor

 

PRAKAS

 

ON

 

REGISTRATION   AND LICENSING  OF  MICROFINANCE INSTITUTIONS

 

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Article 1

 

Article 1 of Prakas No B 7-00-06 Prokor of ] anuary 11, 2000 on Licensing of Micro finance Institutions, is hereby repealed and replaced by the present Prakas.

 

Article 2

 

Micro-finance is defined as follows:

 

"The delivery of financial services such as loans and deposits, to the poor and low-income households, and  to micro-enterprises"

 

Article 3

 

Registration with the National Bank of Cambodia is compulsory for all non-government organizations (NGOs) , associations and other entities engaged in  micro-finance, if they meet one  of the following conditions:

a)            For those engaged in  credit:

- Their loan portfolio outstanding is equal to or greater than KHR 100 million

b)            For those  engaged in savings  mobilization

- The savings mobilized from the general public amount to KHR 1 million or more, or

- The number of their depositors is 100 or more.

 

Article 4

 

Registered micro finance operators must comply with existing laws and regul ations and meet the standard and criteria set by the National Bank of Cambodia in terms of good governance, transparency, and competence and honest management.

 

Article 5

 

The National Bank of Cambodia shall deliver a certificate of registration to micro finance operators that presents official request for registration, meets the set standards and criteria, and submits the required information and documents. This certificate can be withdrawn and the registration cancelled if the operators do not comply with conditions set by the NBC.

 

Article 6

 

Micro finance operators that is denied registration by the NBC, or whose registration is cancelled by the National Bank of Cambodia, shall cease all micro-finance activity within three months of being informed of the NBC's decision.

 

Article 7

 

Registered micro finance operators shall provide regular reports on their activities and organization, as and when required by the National Bank of Cambodia.

 

Article 8

 

Licensing is compulsory for all micro-finance institutions, if they meet one of the following conditions:

 

a)            For those engaged in  credit:

 

- Their loan portfolio outstanding is equal to or greater than KHR 1,000 million, OR

- They have  1,000 borrowers  or more

 

b)            For those engaged  in savings  mobilization:

 

- The savings mobilized from the general public amount to K HR 100 million or more,  OR

- The number of their depositors is 1,000 or more.

 

Article 9

 

Micro finance institution are subject to compulsory licensing shall be prepare an application for a license to be submitted to the National Bank of Cambodia have until 31 December 2002. Otherwise they will have to scale down their volume of activity and operate as a registered micro-finance institution, as provided for in Articles 3 to 7 above.

 

Article 10

 

Violations to the provisions of this Prakas may give rise to disciplinary sanctions as set forth in Article  52 of the Law on Banking and Financial Institutions.

 

Article 11

 

The General Direction, the General Secretariat, the General inspection , the General Cashier and all departments of the National Bank of Cambodia, and all Micro Financial Institutions under of the National Bank of Cambodia supervisory authority shall strictly implement this Prakas.

 

Article 12

 

This Prakas shall have effect from the signing date.

 

Phnom  Penh, 25 February  2002

 

The Governor

 

Signed and sealed: Chea Chanto