A gradual increase in economic activity and demand for credit should support both loans and earnings in the Thai banking sector, although a shift away from consumer lending is likely to continue and low interest rates may prompt banks to tap into other revenue streams.
What challenges does Mongolia’s economic slowdown pose for the banking sector? Where are there opportunities for growth?
In some ways, Mongolia can be considered “well-banked” in terms of banking access. It has one of the highest branch per capita ratios in the world. At 69 per 100,000 (according to World Bank 2012 numbers), it has far more banking outlets for each inhabitant than its peers and neighbours: South Korea is at 18; China, 8; and Russia, 38. Additionally, over 80% of Mongolians...
What is the importance of attracting increased foreign investment? How has balance of payments (BoP) pressure impacted economic stability?
Banks in Mongolia saw weaker profits in 2015 as one of Asia’s fastest growing economies cools, triggering higher borrowing costs and an increase in non-performing loans (NPLs), while credit rating agencies are also watching the banks’ vulnerability to China's continued economic slowdown. Recent downgrades in Mongolia's sovereign credit rating following falls in commodity...
While early 2014 was a time of considerable uncertainty for the banking sector in Mongolia, the year turned out to be much better than expected. No banks failed or faced runs, and the institution that generated the greatest concern – Golomt Bank – fared well in the end. As the sector’s third-largest player by assets, a collapse at Golomt Bank would have caused serious...
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