IFC hosts forum to help Mongolian banks improve competitiveness

The International Finance Corporation (IFC), a member of the World Bank Group and Mongolia’s Corporate Governance Development Center launched the sixth annual National Corporate Governance Forum in Ulaanbaatar on May 24, to discuss ways to enhance the performance and competitiveness of Mongolian banks.


More than 100 bank directors, managers, and government officials gathered at the forum to discuss good governance practices and international trends in the banking sector, as well as specific challenges faced by Mongolian banks in managing their rapid growth and related risks.


“Banks play a very important role in Mongolia’s economic development,” said Bold Javkhlan, first deputy governor of Central Bank of Mongolia. “Better corporate governance practices could help Mongolian banks increase efficiency, protect shareholder rights and improve their access to international capital markets.”


With cooperation from IFC, the Mongolian parliament adopted a new company law in 2011 to strengthen the country’s corporate governance regulations and improve transparency. IFC has been making investments in Mongolia’s banking sector since 2002, when it first provided a loan to Xac Bank. Earlier this year, IFC provided 20 million USD to Khan Bank LLC to boost its small and medium enterprise lending.

“IFC is committed to the sustainable development of Mongolia’s banking sector. We offer much-needed capital and advice at different stages of the industry’s development,” said Hyun-Chan Cho, IFC’s country manager for China, Mongolia and Korea. “By partnering with the banks, we hope to introduce transparent and accountable business models for more Mongolian businesses to follow.”

In partnership with Japan and the Netherlands, IFC’s Mongolia Corporate Governance Program has organized training and consultations for more than 300 joint-stock companies and banks since 2009. IFC has been advising three Mongolian banks – Khan Bank, Xac Bank, and Capital Bank – on their corporate governance practices.

IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. In 2012, their investments reached more than 20 billion USD designated for the private sector, in IFC’s effort to create jobs, spark innovation, and tackle the world’s most pressing development challenges.


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Posted by on May 28 2013. Filed under Business & Economics. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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