Mongolia’s overall banking sector was evaluated as stable according to asset quality review under the IMF’s ‘Extended Fund Facility program, reported the Central Bank of Mongolia.
The quality of bank’s loan portfolio, its operational policy, regulations, credit risk management system, collateral and third-level assets were evaluated during the asset quality review. The review concludes that banks’ credit risk management, conditions and requirements related to collateral value need to be improved.
Officials note that the asset quality review was based on the financial balance of 2016 when the country was undergoing financial and economic difficulties, and adjusted as of the third quarter of 2017, taking into consideration the financial and economic situation of the year of 2017.
The asset quality review of commercial banks was made by the “Pricewaterhouse Coopers” company registered in the Czech Republic.