Central Bank Encourages Interbank Market

Over two years after launching Negotiable Certificates of Deposit (NCDs), a security meant to encourage interbank lending and reduce the role of the state in the financial sector, the National Bank of Cambodia (NBC) announced new measures to catapult the effort on Friday. In late 2013, in a bid to reduce the amount of surplus funds deposited with the NBC, it began issuing NCDs, which can be sold by cash-strapped banks to banks with high liquidity, who can then cash them in with interest upon maturity.