PHNOM PENH, May 11 (Xinhua) — The International Finance Corporation (IFC) has signed a memorandum of understanding with the National Bank of Cambodia (NBC), or central bank, to strengthen corporate governance practices among banking and financial institutions, according to an IFC press release on Wednesday.

"The partnership aims to improve transparency and increase public confidence in the banking sector," the press release said.

IFC will help NBC enhance its regulatory, supervisory, and enforcement capabilities by developing and providing corporate governance training and workshops to the bank's staff, it said, adding that the central bank, together with IFC, will develop a corporate governance code, which will set best practices for banking and financial institutions in Cambodia to follow.

"Prudential risk management and internal control are important to the sustainable development of Cambodia's banking industry," said Rath Sovannorak, deputy director-general of NBC's Banking Supervision. "We expect the project to send a strong message about the banking sector's commitment to further improve upon its corporate governance practices and thus integrate into the global financial system."

The two institutions will co-organize a series of public seminars and workshops to raise awareness of corporate governance principles, the press release said, adding that these opportunities for learning will reinforce effective means of risk management, compliance, and control functions within the banking industry.

"Our cooperation with the NBC will help improve transparency and risk management practices in the banking sector," said Kyle Kelhofer, IFC country manager for Cambodia. "This will help banking and financial institutions mitigate lending risks and increase access to finance for both businesses and individuals, which will in turn contribute to further sustainable economic development of Cambodia."

Cambodia currently has 36 commercial banks, 11 specialized banks, and 64 microfinance institutions.