Mongolia: Financial Regulation and Governance Program

Evaluation Document | 4 November 2013

Validates the completion report's assessment of the program, which aimed for a broad-based financial sector with alternative channels of financial intermediation in Mongolia. IED overall assessment: Less than Successful

Mongolia underwent a transition from monobanking to a two-tiered banking system in 1991. However, the transition was not smooth with the Mongolian financial system being beset by a number of financial crises in 1994, 1996, and 1999. In 2008, Mongolia was also affected by the global financial crisis and a drop in copper prices. The latter prompted the government to enter into a standby arrangement with the International Monetary Fund (IMF), which ended in October 2010.

The development of the financial sector has been central to achieving the transition from a centrally planned to a market-based economy due to the financial system's critical role in mobilizing and allocating resources within the economy in a market-oriented system. ADB has supported the development of the financial sector in Mongolia through loans and technical assistance (TA). The first phase of comprehensive financial sector reforms was launched in 1996 against the backdrop of a fragile banking sector with a number of illiquid and insolvent banks.

This report validates the completion report's assessment of the project. IED overall assessment: Less than successful


  • Project Basic Data
  • Project Description
  • Evaluation of Performance and Ratings
  • Other Performance Assessments
  • Overall Assessment, Lessons, and Recommendations
  • Other Considerations and Follow-up