Capital bank reimbursement not from taxpayer money

Translator E.Oyun-Erdene

2019-04-15 18:17 GMT+8

256 thousand deposit accounts of individuals and entities were placed at Capital bank. 99.5% of total accounts were insured to Deposit Insurance Corporation. The corporation has obligation to insure or reimburse current and deposit accounts up to MNT 20 million.

MNT 421 billion is retained at Deposit Insurance Corporation which individuals and entities will be reimbursed from. The corporation collects fee from 14 commercial banks quarterly and accumulates in the fund. Thus, reimbursement shall net be made from tax payer’s money.

Currently, Bank of Mongolia beneficiary is working on confirmation of financial statement and assets of Capital bank. After that, customers can receive their money through Khan Bank due to it has many branches throughout Mongolia. 

As for deposits above MNT 20 million, reimbursement shall be made as proportional method which a person who has deposits of MNT 90 million shall receive MNT 20 million initially when 80% disbursement is considered available. And for 80% of remaining 70 million, MNT 56 million will be disbursed, MNT 76 million in total. Loss of the deposit holder is MNT 14 million.

Deposit and account holders shall claim to the beneficiary and be reimbursed by payment from borrowers and property sales according to order reflected in the law. Reimbursement of deposit holders above MNT 20 million is at 5th of the order.

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