The National Bank of Cambodia (NBC) will today launch a new financial security intended to strengthen the country’s commercial banking system and help maintain liquidity during economic downturns, according to a statement released Sunday. The securities, known as Negotiable Certificates of Deposit (NCDs), will allow banks to convert surplus deposits that they would otherwise deposit at the NBC for a negligible interest rate into securities that they can readily sell or use as collateral for inter-bank loans. The NBC statement explains that the NCDs will also contribute to the creation of a fully-functioning inter-bank market by making it
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