The Bank of Mongolia (BoM) held a press conference on February 22, and presented the results of the asset quality review (AQR) of Mongolia's commercial banks.
The results were released after 230 assessment professionals and auditors from PricewaterhouseCoopers worked on the AQR for six months.
According to the results, the capital amount requirement of the banks was 1.9 percent of 2017’s GDP, which was determined to be insufficient. The BoM instructed the nation's banks to raise their capital by the end of 2018. Capital in the banking sector makes up 13.7 percent of total assets and real-time payments make up 45 percent. Loan packages were categorically assessed, broken down as corporate, small and medium-sized enterprises, mortgage, and retail loans. It was noted that the assessment of mining licenses as loan collateral is a practice not observed in many other countries.
The Bank of Mongolia (BoM) held a press conference on February 22, and presented the results of the asset quality review (AQR) of Mongolia's commercial banks.
The results were released after 230 assessment professionals and auditors from PricewaterhouseCoopers worked on the AQR for six months.
According to the results, the capital amount requirement of the banks was 1.9 percent of 2017’s GDP, which was determined to be insufficient. The BoM instructed the nation's banks to raise their capital by the end of 2018. Capital in the banking sector makes up 13.7 percent of total assets and real-time payments make up 45 percent. Loan packages were categorically assessed, broken down as corporate, small and medium-sized enterprises, mortgage, and retail loans. It was noted that the assessment of mining licenses as loan collateral is a practice not observed in many other countries.