The Asian Development Bank is working with Mongolia to strengthen the financial sector by helping it operate more efficiently, reach more people and generate investments. The project is making financial transactions more secure; protecting depositors from poor practices by banks: and reducing the risks of money laundering.
| Project Name | Financial Regulation and Governance Program | ||||||||
| Project Number | 34135-013 | ||||||||
| Country | Mongolia |
||||||||
| Project Status | Closed | ||||||||
| Project Type / Modality of Assistance | Loan |
||||||||
| Source of Funding / Amount |
|
||||||||
| Strategic Agendas | Inclusive economic growth |
||||||||
| Drivers of Change | Governance and capacity development Private sector development |
||||||||
| Sector / Subsector | Finance - Finance sector development |
||||||||
| Gender Equity and Mainstreaming | No gender elements | ||||||||
| Description | The purpose of the Program is to support the development of a sound and broad-based financial sector that effectively channels resources to productive investment. Specifically, the Program will seek to: (i) reduce the cost of borrowing and expand access to credit by improving the framework for secured transactions, (ii) protect depositors from poor governance practices in banks, (iii) enhance the role of the non-bank financial (NBF) sector in savings mobilization for investment capital, and (iv) improve investor confidence by reducing the risks from potential money laundering through the financial system. The Program has three main components: (i) banking sector; (ii) NBF sector; and (iii) Anti-money laundering (AML) regime. The banking sector component will aim to reduce the cost of borrowing and expand access to credit by facilitating debt enforcement and lowering the cost of collateral registration. This component will also introduce legal and regulatory changes to strengthen corporate governance in banks and to improve the supervision of groups and conglomerates that control financial institutions. The NBF sector component will seek to enhance the sector's role in resource mobilization and allocation by developing the legal and regulatory framework, strenghening regulatory capacity through the establishment of a single regulator for NBF sector, the Nonbank Financial Regulatory Commission (NBFRC), and strengthening corporate governance and transparency. This component will also aim to reduce the distortionary impact of tax policies on the financial sector. The AML component will seek to mitigate the potential risks from money laundering activities by supporting the development of the legal and regulatory framework for the AML regime, and the establishment of a financial intelligence unit to monitor and report suspicious financial transactions. |
||||||||
| Project Rationale and Linkage to Country/Regional Strategy | The country strategy and program (CSP) for Mongolia identifies the underdevelopment of the financial sector and limited access of households and small and medium-sized enterprises (SMEs) to financial services as key impediments to private sector-led economic growth and poverty reduction. A sound financial system with improved efficiency and outreach is a key medium-term outcome envisioned in the CSP. The reforms implemented under the FRGP are fully in line with the Government?s priorities and medium-term objectives. | ||||||||
| Impact | |||||||||
| Project Outcome | |
|---|---|
| Description of Outcome | |
| Progress Toward Outcome | |
| Implementation Progress | |
| Description of Project Outputs | |
| Status of Implementation Progress (Outputs, Activities, and Issues) | |
| Geographical Location | Mongolia |
| Safeguard Categories | |
|---|---|
| Environment | C |
| Involuntary Resettlement | C |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | |
| During Project Implementation | |
| Business Opportunities | |
|---|---|
| Consulting Services | None |
| Procurement | The loan proceeds will be used to finance the foreign exchange costs of items produced and procured in ADB member countries (other than the items specified in the negative list of ineligible items and imports financed by other bilateral and multilateral sources). The Government will certify that the volume of eligible imports exceed the amount of ADB's projected disbursement under the loan for the given period. ADB reserves the right to audit the use of the loan proceeds and verify the accuracy of the Government's certification. |
| Responsible ADB Officer | Hansen, Jan |
| Responsible ADB Department | East Asia Department |
| Responsible ADB Division | Public Mgt, Financial Sector and Regional Coop Division, EARD |
| Executing Agencies |
Ministry of Finance Mr. Balgan Batbayar [email protected] Government Building-2 Negdsen Undestnii gudamj-5/1 Ulaanbaatar-210646, Mongolia |
| Timetable | |
|---|---|
| Concept Clearance | 15 Aug 2003 |
| Fact Finding | 26 Apr 2005 to 06 May 2005 |
| MRM | 20 Sep 2005 |
| Approval | 15 Dec 2005 |
| Last Review Mission | - |
| PDS Creation Date | 29 Jul 2006 |
| Last PDS Update | 25 Jul 2010 |
Loan 2218-MON
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 15 Dec 2005 | 04 Jul 2006 | 18 Sep 2006 | 30 Jun 2010 | - | 30 Jun 2010 |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 10.00 | Cumulative Contract Awards | |||
| ADB | 10.00 | 15 Dec 2005 | 5.15 | 0.00 | 100% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 15 Dec 2005 | 5.15 | 0.00 | 100% |
TA 4737-MON
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 15 Dec 2005 | 31 Mar 2006 | 31 Mar 2006 | 31 Dec 2007 | 30 Apr 2010 | - |
| Financing Plan/TA Utilization | Cumulative Disbursements | |||||||
|---|---|---|---|---|---|---|---|---|
| ADB | Cofinancing | Counterpart | Total | Date | Amount | |||
| Gov | Beneficiaries | Project Sponsor | Others | |||||
| 900,000.00 | 0.00 | 220,000.00 | 0.00 | 0.00 | 0.00 | 1,120,000.00 | 15 Dec 2005 | 893,579.89 |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
| Title | Document Type | Document Date |
|---|---|---|
| Financial Regulation and Governance Program | Project/Program Completion Reports | Dec 2011 |
| Loan Agreement for Financial Regulation and Governance Program between Mongolia and ADB | Loan Agreement (Special Operations) | Dec 2005 |
| Financial Regulation and Governance Program | Reports and Recommendations of the President | Nov 2005 |
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
| Title | Document Type | Document Date |
|---|---|---|
| Mongolia: Financial Regulation and Governance Program | Validations of Project Completion Reports | Nov 2013 |
Related Publications
None currently available.
The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.