The TA will support implementation of the Medium-Term Banking Sector Strengthening Program for 2020 2023 approved by the Bank of Mongolia (BOM) in September 2020. The TA will focus on (i) upgrading bank ownership and accountability frameworks, (ii) improving reporting and regulation of banks' assets, and (iii) promoting new financial products and business models. The TA is an integral part of ADB's support for financial sector stability, and the continued development of the Bank of Mongolia's (BOM) prudential capacity under pillar 1 of the country partnership strategy, 2017 2020.
| Project Name | Strengthening Banking Sector Stability and Performance | ||||
| Project Number | 51415-001 | ||||
| Country | 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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| Strategic Agendas | Inclusive economic growth |
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| Drivers of Change | Governance and capacity development Partnerships Private sector development |
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| Sector / Subsector | Finance / Finance sector development |
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| Gender Equity and Mainstreaming | No gender elements | ||||
| Description | The TA will support implementation of the Medium-Term Banking Sector Strengthening Program for 2020 2023 approved by the Bank of Mongolia (BOM) in September 2020. The TA will focus on (i) upgrading bank ownership and accountability frameworks, (ii) improving reporting and regulation of banks' assets, and (iii) promoting new financial products and business models. The TA is an integral part of ADB's support for financial sector stability, and the continued development of the Bank of Mongolia's (BOM) prudential capacity under pillar 1 of the country partnership strategy, 2017 2020. | ||||
| Project Rationale and Linkage to Country/Regional Strategy | Stability of the banking industry, which constitutes more than 90% of the country's financial sector, continues to be affected by the high-level of nonperforming loans (NPLs), inadequate capital, and weak governance. The TA will help address the issues with bank ownership concentration and accountability, risk management, and paucity of technology-based new financial instruments and business models. It is an integral part of ADB's comprehensive, sustained, and effective support to the financial sector development in Mongolia. The TA will enable continued support to the implementation of the 2017-2020 medium term reform framework of the ADB-supported Banking Sector Rehabilitation and Financial Stability Strengthening Program. The TA follows on the recommendation of program's completion report that ADB should expand and deepen support to the finance sector and that future financial sector operations should the focus on banking reforms. | ||||
| Impact | Investor confidence increased and financial intermediation of Mongolia's banking sector expanded | ||||
| Project Outcome | |
|---|---|
| Description of Outcome | Regulation and management for promoting governance, stability, and development of the banking sector improved |
| Progress Toward Outcome | |
| Implementation Progress | |
| Description of Project Outputs | Policy advice on regulatory frameworks on bank ownership and accountability finalized Guidelines on reporting and regulation of banks' assets updated Digital financial products and business models promoted |
| Status of Implementation Progress (Outputs, Activities, and Issues) | |
| Geographical Location | Nation-wide |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | During the preparation of the TA, consultations will be held with the Bank of Mongolia, pertinent government agencies, banking industry associations, selected banks, and development partners. |
| During Project Implementation | |
| Business Opportunities | |
|---|---|
| Consulting Services | The TA will engage international and national consultants following the ADB Procurement Policy (2017, amended from time to time) |
| Responsible ADB Officer | Haydarov, Aziz K. |
| Responsible ADB Department | East Asia Department |
| Responsible ADB Division | Public Mgt, Financial Sector and Regional Coop Division, EARD |
| Timetable | |
|---|---|
| Concept Clearance | 14 Sep 2020 |
| Fact Finding | 28 Sep 2020 to 06 Oct 2020 |
| MRM | - |
| Approval | 26 Nov 2020 |
| Last Review Mission | - |
| Last PDS Update | 26 Nov 2020 |
TA 6613-MON
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 26 Nov 2020 | 19 Dec 2020 | 19 Dec 2020 | 30 Jun 2023 | - | - |
| Financing Plan/TA Utilization | Cumulative Disbursements | |||||||
|---|---|---|---|---|---|---|---|---|
| ADB | Cofinancing | Counterpart | Total | Date | Amount | |||
| Gov | Beneficiaries | Project Sponsor | Others | |||||
| 750,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 750,000.00 | 26 Nov 2020 | 0.00 |
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 Access to Information Policy (AIP) 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.
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| Title | Document Type | Document Date |
|---|---|---|
| Strengthening Banking Sector Stability and Performance: Technical Assistance Report | Technical Assistance Reports | Nov 2020 |
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
None currently available.
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Tenders
| Tender Title | Type | Status | Posting Date | Deadline |
|---|---|---|---|---|
| Banking Reform Advisory and Capacity Building Consulting Firm | Firm - Consulting | Closed | 08 Dec 2020 | 08 Jan 2021 |
Contracts Awarded
No contracts awarded for this project were found
Procurement Plan
None currently available.