Results of commercial bank examinations made public

The Mongol Bank’s Supervision Department performed commercial bank examinations for how they fulfill a statement asserted in clause #38 of the Law on Banking. This
clause regulates how banks shall openly inform financial reports and other information. The Mongol Bank announced a press conference on September 2, at which Kh. Delger introduced results of the examination. According to the examination, the
structure and progress of equity funds of 14 currently operating banks were surveyed and reviewed as of July 30, 2010. Of the 14 banks operating in the country, the State Bank is Stateowned; and three banks, Chinggis Khaan Bank, Saving Bank, and Credit Bank are 100 percent foreign-owned; Trade and Development Bank, Khan Bank, National Investment Bank, and Trans Bank have mixed foreign and domestic shareholding; and Golomt Bank, Capital Bank, Capitron Bank, Ulaanbaatar City Bank, Erel Bank, and XacBank are 100 percent owned by Mongolians.
The total equity of all banks stands at Tgs 252.1 billion. Of them, Saving Bank has the largest equity fund amount of Tgs60 billion, while Ulaanbaatar Bank, Erel Bank, and Trans Bank have Tgs8 billion.

However, they meet the minimum equity fund stated in the order of the Governor of the Mongol Bank.
It should be no surprise that most commercials banks got insufficient marks during the examination on how they fulfill their obligations by the law, such as issuing reports and punctually inform the public about important information regarding their financial and activity reports, structures and the composition of shareholders, financial and registration system, internal supervision, principal shareholders, members of the Board of Directors and other decisive-making officials and basic banking activity including loans and services. Among the commercial banks, Capital Bank fulfilled its obligation completely. Other banks missed some of the indicators. For instance, some banks failed to perform its duty to inform publicly about disbursed loans, issued letters of credit, other duties and services. For other indicators, they satisfied the examination with 88 percent of the total evaluation. The percentage of bad loans in the total loans of the banking system stood at 20 percent as of December 31, 2009. However, it decreased by 14.4 percent according to the July report.
Administrative actions were taken on banks that did not obey the law completely under the Law on Banking. They are likely to be fined around Tgs5-60 million and received warnings to remove contradictions for a certain period. Equity fund amounts and owners of the commercials banks are shown below

source: The Mongol Messenger


Post a Comment

Facebook page

Powered by Blogger.


Advertising in Mongolia An Culture Editorial of the Mongolianviews education Environmental protection Famous Mongolians Foreigners in Mongolia Inner Mongolia Ivanhoe Mines Mongolia agriculture Mongolia analysis Mongolia and Australia Mongolia and Belorussia Mongolia and Cambodia Mongolia and Canada Mongolia and central Asia Mongolia and China Mongolia and Cuba Mongolia and EU Mongolia and Germany Mongolia and Hongkong Mongolia and Hungary Mongolia and India Mongolia and Inner Mongolia Mongolia and Iran Mongolia and Israel Mongolia and Italy Mongolia and Japan Mongolia and Kazakhstan Mongolia and Korea Mongolia and Kuwait Mongolia and Kyrgyzstan Mongolia and Malaysia Mongolia and Nato Mongolia and North Korean Mongolia and Poland Mongolia and Russia Mongolia and Singapore Mongolia and South Korea Mongolia and Taiwan Mongolia and the world Mongolia and Tibet Mongolia and Turkey Mongolia and UK Mongolia and Ukraine Mongolia and UN Mongolia and US Mongolia and USA Mongolia and Vietnam Mongolia Banking Mongolia civic society Mongolia crime Mongolia diplomacy Mongolia Economy Mongolia Education Mongolia Energy Mongolia Finance Mongolia Health Mongolia History Mongolia holiday Mongolia in international media Mongolia Industries Mongolia Joke Mongolia law Mongolia LGBT Mongolia medical Mongolia military Mongolia Mining Mongolia Mining Developments Mongolia Mortgage Mongolia natural disaster Mongolia Petroleum Mongolia public announcements Mongolia railways Mongolia Religion Mongolia society Mongolia Sports Mongolia Stamp Mongolia telecommunication Mongolia tourism Mongolia Urbanization Mongolia Wild Life Mongolian Agriculture Mongolian Archeology Mongolian Food Mongolian Gay Mongolian Government news Mongolian History Mongolian Military Mongolian Mining Development Mongolian Movie Mongolian News Mongolian Parliament Mongolian Political news Mongolian Press Mongolian Songs Mongolian Women Mongolian Youth Mongolians abroad Moninfo Opinion Oyu Tolgoi Investment Agreement Photo news Press Release Rio Tinto Tavan Tolgoi coal mine Ulaanbaatar development Weird expatriates in Mongolia

Blog Archive