The Central Bank of Mongolia started implementing policy to limit consumer loan and support business loan since January 1.
In particular, Monetary Policy Committee of Bank of Mongolia made decision to set consumer loans except for mortgage loan to have up to 30-month term in 2018. It has been implemented for 10 months and impact has been shown as G.Tumentsengel, Director of Monetary Policy Department of the Bank of Mongolia said.
He stated “Consumer loan increased by 30-50% since 2017, and stabilized now. Business loan has increased last few months which is good. As of October, total loan growth is 10%, and its 82% is business loan that shows proper loan structure. NBFIs have loan portfolio of MNT 1 trillion, while loans of MNT 2 trillion are disbursed per month in Banking sector”.
By supporting business loan, citizens pay 70% of after tax income, at maximum, to loan payment. It has positive impact on household debt pressure and bank sector risk. Also it will influence on investment and business loans to increase working places in a positive way.
The Central Bank of Mongolia started implementing policy to limit consumer loan and support business loan since January 1.
In particular, Monetary Policy Committee of Bank of Mongolia made decision to set consumer loans except for mortgage loan to have up to 30-month term in 2018. It has been implemented for 10 months and impact has been shown as G.Tumentsengel, Director of Monetary Policy Department of the Bank of Mongolia said.
He stated “Consumer loan increased by 30-50% since 2017, and stabilized now. Business loan has increased last few months which is good. As of October, total loan growth is 10%, and its 82% is business loan that shows proper loan structure. NBFIs have loan portfolio of MNT 1 trillion, while loans of MNT 2 trillion are disbursed per month in Banking sector”.
By supporting business loan, citizens pay 70% of after tax income, at maximum, to loan payment. It has positive impact on household debt pressure and bank sector risk. Also it will influence on investment and business loans to increase working places in a positive way.