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Mongolia: Strengthening Banking Sector Stability and Performance

Sovereign (Public) Project | 51415-001 Status: Active

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 Details

Project Officer
Haydarov, Aziz K. East Asia Department Request for information
Country
  • Mongolia
Sector
  • Finance
 
Project Name Strengthening Banking Sector Stability and Performance
Project Number 51415-001
Country Mongolia
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 6613-MON: Strengthening Banking Sector Stability and Performance
Technical Assistance Special Fund US$ 750,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Private sector development
Sector / Subsector

Finance / Finance sector development

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.

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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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.