The Royal Government of Cambodia (RGC) and the Financial Services Agency (JFSA), Japan’s top regulator, discussed ways to promote transition finance in banking supervision.
The discussions took place during Chea Serey, Governor of the National Bank of Cambodia (NBC), and Mey Van, Secretary of State of the Ministry of Economy and Finance (MEF), participation in the second meeting of the Asia High-level Financial Regulators’ Forum in Tokyo, Japan, on October 2.
During the dialogue session, Serey briefed about the Cambodian perspectives and discussed the transition finance in banking supervision.
According to the NBC release, the forum was organised by the Japanese government that brought together foreign investors and asset management companies for a series of events, emphasising the crucial role of transition finance in steering banks toward sustainable practices while ensuring a resilient and future-ready financial system.
Writing on social, Serey mentioned her attendance at a high-level regulators’ forum organised by JFSA in Tokyo, which included representatives from ASEAN member countries and India. “We discussed and shared our views on sustainable and resilient finance,” she wrote.
According to the JFSA press release, the forum was organised to facilitate the exchange of views and strengthen cooperation among Asia’s financial regulatory and supervisory authorities aimed at addressing the common challenges that emerged in the region.
In the course of the meeting, high-level representatives of Asian financial authorities shared their views and knowledge about the regulator’s role in enhancing ‘sustainability and resilience’ and ‘transition finance’, the statement added.
On October 3, Hideki Ito, Vice Commissioner of JFSA, and Mey Van, Secretary of State of the Ministry of Economy and Finance (MEF), representing the Cambodia Non-Bank Financial Services Authority (CFSA), exchanged letters of cooperation.
According to the JFSA press release, the cooperation framework is to facilitate the development of effective financial regulatory and supervisory practices between JFSA and CFSA. Under this framework, JFSA will maintain an ongoing dialogue with the CFSA, including through the Global Financial Partnership Center (GLOPAC).
It may be informed that the GLOPAC is an initiative established by JFSA to promote cooperation and collaboration among financial regulators and institutions worldwide. It serves as a platform for dialogue, information sharing, and capacity building among its members, which include regulatory bodies and financial institutions from various countries.
Speaking to Khmer Times, Niraj Gupta, Director of Macro Computing Solutions Co Ltd said that the collaboration between RGC and JFSA to promote transition finance represents a significant milestone for Cambodia’s financial landscape.
He explained that transition finance refers to the allocation of capital and financial services designed to facilitate the shift from carbon-intensive industries to more sustainable and environmentally responsible practices.
“This mechanism is crucial for enabling economies to meet global sustainability goals while maintaining economic stability and growth,” Gupta said.
By engaging with Japan, Cambodia stands to benefit in multiple ways. Firstly, Japan’s advanced regulatory expertise can aid Cambodia in strengthening its financial supervisory frameworks, ensuring greater stability and fostering investor confidence within the Cambodian financial sector.
Secondly, the partnership opens doors to sustainable investment opportunities, particularly in sectors such as renewable energy, sustainable agriculture, and green infrastructure. These investments are not only vital for environmental sustainability but also for driving long-term economic growth and diversification in Cambodia.
RGC and JFSA’s cooperation on transition finance not only positions Cambodia as a proactive leader in sustainable finance within the region but also provides the necessary tools and frameworks to achieve robust economic growth aligned with environmental stewardship, he added.
(Source: Khmertimeskh)