Mongolia : Expanding the Capacity of the Nonbank Finance Sector to Support Financial Access
The technical assistance (TA) seeks to support the Government of Mongolia to enhance nonbank financial system's capacity for providing financial access through supporting the resolution, rehabilitation, and development of the savings and credit cooperative (SCC) sector.
Project Details
-
Project Officer
Romero-Torres, Jennifer
East Asia Department
Request for information -
Country/Economy
Mongolia -
Sector
- Finance
| Project Name | Expanding the Capacity of the Nonbank Finance Sector to Support Financial Access | ||||||||||||
| Project Number | 51411-001 | ||||||||||||
| Country / Economy | Mongolia |
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| Project Status | Active | ||||||||||||
| Project Type / Modality of Assistance | Technical Assistance |
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| Source of Funding / Amount |
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| Operational Priorities | OP6: Strengthening governance and institutional capacity |
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| Sector / Subsector | Finance / Banking systems and nonbank financial institutions - Finance sector development |
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| Gender | Some gender elements | ||||||||||||
| Description | The technical assistance (TA) seeks to support the Government of Mongolia to enhance nonbank financial system's capacity for providing financial access through supporting the resolution, rehabilitation, and development of the savings and credit cooperative (SCC) sector. | ||||||||||||
| Project Rationale and Linkage to Country/Regional Strategy | The TA is included in the country operations business plan, 2018-2020 for Mongolia of the Asian Development Bank. | ||||||||||||
| Impact | A stable, sustainable, and balanced finance sector promoted |
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| Project Outcome | |
|---|---|
| Description of Outcome | Nonbank finance sector contribution to the financial system expanded |
| Progress Toward Outcome | The activities of the TA are ongoing and on track. |
| Implementation Progress | |
| Description of Project Outputs | Capacity of savings and credit cooperatives in business operations and risk management strengthened Capacity of the Financial Regulatory Commission overseeing savings and credit cooperatives and other nonbank financial institutions increased Governance, accountability and capacity of licensed NBFIs providing trust services and foreign exchange trading strengthened |
| Status of Implementation Progress (Outputs, Activities, and Issues) | Capacity of savings and credit cooperatives in business operations and risk management strengthened - Resolution and rehabilitation program still ongoing. As a result of the program for 2018-Q2,2022: (i) Suspended licenses: 71, Restored licenses: 18, and Terminated licenses: 144 (Source FRC report). - SCC sector road map is under preparation.- Workshops on SCC Risk management have been provided to 262 participants who are supervision committee members and managers of 93 SCCs. Female participants are 75.1% of the total attendees. Progress: 46.5%.- SCC league will be established after approval of the SCC law amendments. - Framework for SCC deposit insurance scheme is still for approval by FRC, activities are ongoing.- The activities for the preparation of a framework for stabilization fund for the SCC League are ongoing. - The activities for the preparation of a framework for liquidity and reserve fund for SCC League is ongoing. Capacity of the Financial Regulatory Commission overseeing savings and credit cooperatives and other nonbank financial institutions increased - 18 staff, including 13 females, from SCC supervision divisions and SCC divisions, attended the workshops on risk assessments and ratings of SCCs in off-site based - Final draft of the amended Law on Savings and Credit Cooperatives prepared and delivered to Parliament member for official submission to the Parliament and further processing for approval. - Supervisory framework was approved by the Commissioner in 2021. The framework consists of 5 chapters that include supervision background and FRC roles, supervision principles, supervision phases & types, and on-site supervision manners. Governance, accountability, and capacity of licensed NBFIs providing trust services and foreign exchange trading strengthened. - A report on international prudential regulatory and AML practices for trust services and foreign exchange trading will be prepared by the NBFI consultants. - Regional training for the NBFIs was conducted. In Darkhan-Uul aimag, a total of 18 NBFIs were trained, 7 from the locals and 11 from branches in the capital city. The total of women who participated in the training is 12 in Darkhan-Uul, while in Erdenet aimag, 15. - Draft amendments/recommendations to the existing regulations on trust services and foreign exchange trading in line with international best practices will be prepared after the mission of the NBFI team to Mongolia in October. |
| Geographical Location | Nation-wide |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | The Financial Regulatory Commission (FRC) had been consulted in detail on the scope, tasks and outputs of the TA during its planning. |
| During Project Implementation | The FRC is implementing agency for the TA. Cooperation with other stakeholders in regularly maintained. |
| Business Opportunities | |
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| Consulting Services | ADB engaged five individual consultants: (i) International Supervision of Nonbank Financial Institutions, 4 person-months; (ii) International Credit Unions and Savings and Credit Cooperatives Specialist, 5 person-months; (iii) National Nonbank Financial Institution Expert (two positions), 6 person-months; and (iv) National Savings and Credit Cooperatives Expert, 5 person-months. Contracts of these consultants are due for closing this 30 October 2023. Due to travel restrictions and other hindrances caused by the pandemic, contract extension and additional inputs are proposed to deliver and complete the assignment. |
| Procurement | none |
| Responsible ADB Officer | Romero-Torres, Jennifer |
| Responsible ADB Department | East Asia Department |
| Responsible ADB Division | Public Mgt, Financial Sector and Regional Coop Division, EARD |
| Executing Agencies |
Ministry of Finance (formerly Ministry of Finance and Economy) |
| Timetable | |
|---|---|
| Concept Clearance | 30 Jul 2018 |
| Fact Finding | 05 Jul 2018 to 09 Jul 2018 |
| MRM | - |
| Approval | 26 Nov 2018 |
| Last Review Mission | - |
| Last PDS Update | 28 Sep 2022 |
TA 9654-MON
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 26 Nov 2018 | 19 Dec 2018 | 19 Dec 2018 | 31 Oct 2020 | 31 Oct 2023 | - |
| Financing Plan/TA Utilization | Cumulative Disbursements | |||||||
|---|---|---|---|---|---|---|---|---|
| ADB | Cofinancing | Counterpart | Total | Date | Amount | |||
| Gov | Beneficiaries | Project Sponsor | Others | |||||
| 725,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 725,000.00 | 29 Mar 2023 | 340,910.40 |
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.
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| Title | Document Type | Document Date |
|---|---|---|
| Expanding the Capacity of the Nonbank Finance Sector to Support Financial Access: Technical Assistance Report | Technical Assistance Reports | Dec 2018 |
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
None currently available.
Related Publications
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Tenders
| Tender Title | Type | Status | Posting Date | Deadline |
|---|---|---|---|---|
| International Consultant on Supervision of Nonbank Financial Institutions | Individual - Consulting | Closed | ||
| Nonbank Financial Institutions Expert (National) | Individual - Consulting | Closed | ||
| National Nonbank Financial Institutions Expert | Individual - Consulting | Closed | ||
| National Savings and Credit Cooperatives Expert | Individual - Consulting | Closed | ||
| National Savings and Credit Cooperatives and Nonbank Financial Institutions Expert | Individual - Consulting | Closed | ||
| International Credit Unions and Savings and Credit Cooperatives Specialist | Individual - Consulting | Closed | ||
| International Supervision of Nonbank Financial Institutions | Individual - Consulting | Closed |
Contracts Awarded
Procurement Plan
None currently available.