Research on the Development Strategy of the Financial Sector 2014-2021 inCambodiafocused on the development of a sound, market-oriented financial sector thatwillmobilize and allocate resources to support sustainable economic growth.RDSFS 2014-2021 reflects Cambodias economic achievements to date and providesan assessment ofcurrent challenges and constraints and action plans for the future. RDSFS 2014-2021 in Cambodia draws on the results, lessons leamed, experiences, andchallengesfrom implementing the previous strategies.(For details on the specific goals andactionplans of RDSFS 2014-2021.Please refer to the Action Plan Matrix that begins onpage39). RDSFS 2014-2021 in Cambodia is designed to be flexible to respond to changingconditions in theeconomic, social, and political situation in Cambodia; to financial industrydevelopmentsand to the changes and challenges that result from Cambodias increasingIntegrationinto the regional and global markets. 1 Major Achievements over the Past Decade　　passage of major commercial and financial sector laws to support development of a soundand market-driven financial sector. restructuring of the banking sector and the strengthening of key financial Institutions.introduction of the financial sector infrastructure necessary to support financialmarketactivities and improve outreach to the rural poor,development of human resources and specialized knowledge. mobilization of the domestic financial resources needed to meet the demands of afastgrowingeconomy. 2 Preparing for Challengesawareness, preparedness, and close coordination among all key stakeholders. regular monitoring of achievements and early identification of problems in orderto addressproblems swiftly and in an appropriate manner.allocation of the resources necessary to implement this strategic plan.ownership of this strategic plan by all relevant authorities.clarity about who is responsible and accountable for implementing the action plans.cooperation among international organizations and development partners thatprovidetechnical assistance and other forms of support, and oversight by the concerned authorities.building a sound foundation for ongoing capacity development.3 Objectives and StrategiesThe objective of RDSFS 2014-2021 in Cambodia is to develop a sound financialsector that cancontribute to poverty reduction by supporting economic growth andincreasing poor peoples access to finance. The banking subsector continues to dominate the financial sector and will continue to bethesectors most critical segment.With regard to banking, the priorities are　　maintaining monetary and financial stability. addressing constraints in order to accelerate sector development. intensifying resource mobilization and enhancing the efficiency of resourceallocationthrough development of a money market. The vision for microfinance is to strengthen the sector so that it can provide the poorwithaffordable financial services, increased income, and reduce poverty.The goal over thecoming decade is to further develop the sector so that it covers greater numbers oflow-income people. For the insurance sector, the strategy is to implement the action plan specified in the firstBlueprint 2001-2010, develop new products, and enhance regulations and supervisorycapacity in line with the Insurance Core Principles of the International Association ofInsurance Supervisors(IAIS), of which Cambodia is a member. RDSFS 2014-2021 in Cambodia provides action plans for close cooperation of the bankingwith other relevant sectors tobuild capacity for consolidated supervision and surveillance. combat money laundering and the financing of terrorism. promote leasing. improve corporate governance, data quality, accounting, and auditing. Overall, the reform strategies and action plans for each sector stipulated in theRDSFS2014-2021 in Cambodia are critical and closely interconnected.Delays in attaining thegoalsfor any sector will disrupt reform processes in other sectors.