Mongolia’s overall banking sector has been evaluated “stable” on the Asset Quality Review (AQR) conducted under the IMF’s ‘Extended Fund Facility program, reported the Bank of Mongolia (BoM). Within the frame of International Monetary Fund's Extended Fund Facility program, the BoM has been obliged to conduct Asset Quality Review of Mongolian commercial banks through international audits and signed a deal with PricewaterhouseCoopers of Czech Republic in August 2017.
The quality of bank’s loan portfolio, operational policy, rules and regulations, credit risk management system, collaterals and third-level assets were evaluated during the AQR. The review concludes that banks’ credit risk management, conditions and requirements related to collateral value need to be improved. The AQR is the first stage of EFF’s actions on determining the asset adequacy of banking sector. With the release of AQR, commercial banks are obliged to prepare a business plan to improve loan portfolio until 2021 and will have until March 2018 to attract the investment needed to fulfill IMF requirements.
Mongolia’s overall banking sector has been evaluated “stable” on the Asset Quality Review (AQR) conducted under the IMF’s ‘Extended Fund Facility program, reported the Bank of Mongolia (BoM). Within the frame of International Monetary Fund's Extended Fund Facility program, the BoM has been obliged to conduct Asset Quality Review of Mongolian commercial banks through international audits and signed a deal with PricewaterhouseCoopers of Czech Republic in August 2017.
The quality of bank’s loan portfolio, operational policy, rules and regulations, credit risk management system, collaterals and third-level assets were evaluated during the AQR. The review concludes that banks’ credit risk management, conditions and requirements related to collateral value need to be improved. The AQR is the first stage of EFF’s actions on determining the asset adequacy of banking sector. With the release of AQR, commercial banks are obliged to prepare a business plan to improve loan portfolio until 2021 and will have until March 2018 to attract the investment needed to fulfill IMF requirements.