Banking

The banking sector has recovered from a financial crisis in 2008-09 that resulted from economic overheating and internal inflation. The sector is set to benefit from an influx of new mining projects, although the scale of the mining enterprises themselves far outstrips the available capital of all top banks combined. Instead, banks will focus on lending to service industries and to consumers who use their newfound wealth to buy houses and cars. Small and medium-sized enterprises are a major focus, and the government has launched programmes to improve access to credit. One threat to growth, however, is a tightening of interest rates as the central bank tries to curb inflation. This chapter features an interview with L. Purevdorj, Governor, Bank of Mongolia (BOM), and a roundtable discussion with John P Finigan, CEO, Golomt Bank; Norihiko Kato, Acting CEO, Khan Bank; Randolph S Koppa, President, Trade and Development Bank (TDB); and D. Bat-Ochir, CEO, XacBank.