Parliamentary Standing Committee on Economy discussed measures on reducing the interest rate during its regular session yesterday. The committee concluded that the inflation needs to be reduced to 5 percent in order to improve long-term economic indicators. Furthermore, the Bank of Mongolia (BoM) issued a suggestion to regulate pawnshops, stating that high sum of assets circulate in the sphere.
The BoM representatives informed of opportunities of advancing loan database to reduce actual expense of asset quality review in the interest. In other words, the bank views that it is possible for private sector to introduce credit scoring for loan database, reducing interests of performing loans. According to officials, loan grants intensified and grew by 11.5 percent as of the third quarter of 2017.
The 2018 first quarter statistics show that loans granted to private entities and individuals increased by MNT 1.5 trillion and reached MNT 14.1 trillion. In specific, overdue loans fell by 6 percent, while non-performing loans increased by 19 percent in the first quarter. According to the National Statistics Office, a total of MNT 1.2 trillion non-performing loans registered in the banking system. Inflation Outlook Report states that consumer loans amount majority of loan growth, while the growth of business loans remain at nil-level in the last three years.
B.Tugs
Parliamentary Standing Committee on Economy discussed measures on reducing the interest rate during its regular session yesterday. The committee concluded that the inflation needs to be reduced to 5 percent in order to improve long-term economic indicators. Furthermore, the Bank of Mongolia (BoM) issued a suggestion to regulate pawnshops, stating that high sum of assets circulate in the sphere.
The BoM representatives informed of opportunities of advancing loan database to reduce actual expense of asset quality review in the interest. In other words, the bank views that it is possible for private sector to introduce credit scoring for loan database, reducing interests of performing loans. According to officials, loan grants intensified and grew by 11.5 percent as of the third quarter of 2017.
The 2018 first quarter statistics show that loans granted to private entities and individuals increased by MNT 1.5 trillion and reached MNT 14.1 trillion. In specific, overdue loans fell by 6 percent, while non-performing loans increased by 19 percent in the first quarter. According to the National Statistics Office, a total of MNT 1.2 trillion non-performing loans registered in the banking system. Inflation Outlook Report states that consumer loans amount majority of loan growth, while the growth of business loans remain at nil-level in the last three years.
B.Tugs