The Governor of the Bank of Mongolia (BoM) has issued an order to keep the minimum amount of shareholder value required of Mongolia's banks at 100 billion MNT, starting from December 31, 2021.
The order was issued based on research suggesting that the domestic economy will grow for the next four years. BoM officials noted that the order has nothing to do with the International Monetary Fund's asset quality review and its results.
The central bank believes that increasing shareholder value will help banks boost their ability to act as financial intermediaries and improve risk management. The BoM says that the order will also strengthen small banks and decrease loan interest rates.
Officials also highlighted that amendments to the Law on the Central Bank should monitor and limit political involvement in determining monetary policy.
amcham.mn
The Governor of the Bank of Mongolia (BoM) has issued an order to keep the minimum amount of shareholder value required of Mongolia's banks at 100 billion MNT, starting from December 31, 2021.
The order was issued based on research suggesting that the domestic economy will grow for the next four years. BoM officials noted that the order has nothing to do with the International Monetary Fund's asset quality review and its results.
The central bank believes that increasing shareholder value will help banks boost their ability to act as financial intermediaries and improve risk management. The BoM says that the order will also strengthen small banks and decrease loan interest rates.
Officials also highlighted that amendments to the Law on the Central Bank should monitor and limit political involvement in determining monetary policy.
amcham.mn