Total issuance of NCDs triples in 2016

According to the 2016 annual report of the National Bank of Cambodia (NBC), total issuance of negotiable certificates of deposits (NCDs) tripled last year, with $11bn in USD-denominated certificates and KHR12tn ($3bn) in KHR-denominated certificates placed on the market over the course of the year. NBC director-general Chea Serey said the growing demand for NCDs was largely the result of increased awareness of their benefits, such as its use as collateral for the liquidity-providing collateralized operation (LPCO), a quick-fix liquidity solution available through weekly auctions. The NBC first introduced NCDs in 2013 in an effort to end the high-risk informal interbank lending system that financial institutions were employing to overcome temporary liquidity shortages. A scheduled weekly issuance has been in effect since last October. (Source: Phnom Penh Post)