Bill on bank recapitalization to be discussed

The American Chamber of Commerce in Mongolia

2018-06-04 16:34 GMT+8

During its May 31st regular session, Parliament held a closed discussion on a bill on bank recapitalization and approved it for further review.

Member of Parliament Ch. Ulaan and Governor of the Bank of Mongolia (BoM) N. Bayartsaikhan gave a press briefing on the bill, which is part of reforms for the banking sector.

The central bank, in cooperation with international audit company PwC, completed an asset quality evaluation of the banking sector. Governor N. Bayartsaikhan noted, “It has been estimated that there is a 511 billion MNT equity shortage among the banks. We believe that this indicates low risk in the banking sector.

The International Monetary Fund expressed the same view in its assessment statement.” MP Ch. Ulaan stated, “Banks are required to recapitalize through their own means in the first stage of reforms. If banks can’t recapitalize on their own, a mechanism allowing state support in the process is included in the proposed bill.”​

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