Banks play an important role in a country’s economy, especially given that their functions are crucial as to constitute a sort of public service. For this reason, any bankruptcy could affect financial stability and the robustness of the country’s economy. To mitigate those repercussions, it requires a special insolvency regime. However, the special regime has not fully been implemented by Cambodian law. The current Law on Insolvency of Cambodia does not apply to banks, which is the reason that would create an uncertainty and unsatisfactory situation in the legal system if Cambodia was to deal with cases involving the insolvency of banks. This article examines the insolvency regime applicable to banks under Cambodian Law, determines issues to be addressed as well as proposes an approach to design the legal framework for the insolvency regime for banks, which would provide advantages not only to banks but also to investors and the economy as a whole.