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
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