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)