Mongolia: Finance Sector Fact Sheet
This fact sheet provides concise information on Mongolia’s finance sector and a summary of ADB-assisted programs, challenges and future directions.
The Asian Development Bank (ADB) has a long history of supporting Mongolia’s finance sector. The first engagement was in 1991, just after Mongolia joined ADB, when advice and capacity building was provided to the Mongolian Stock Exchange for its operations. Since then, ADB has supported Mongolia’s finance sector through $130 million in lending programs, $109 million in technical assistance (TA) projects, and $96 million in private sector investments.
Mongolia’s finance sector, despite several improvements, is still very fragile. The economy’s heavy reliance on the mining sector exposes the finance sector to risks from global price fluctuations in commodities. Risks have been rising and the finance sector currently suffers from a high level of nonperforming loans. This is preventing banks from making new loans necessary for economic recovery.
Many improvements have been made in terms of the capacity and range of financial products and public services, and the strength of the financial framework. But challenges exist in improving financial access, ensuring financial support for small and medium-sized enterprises (SMEs), and further enhancing sound regulatory oversight.