Publication: Financial Sector Assessment: Mongolia
Date
2012-06
ISSN
Published
2012-06
Author(s)
World Bank
Abstract
Owing primarily to extensive investment
in new mining projects, Mongolia's economy is on a path
of very rapid long-term growth. While financial
intermediation in Mongolia has been growing fast, access to
finance remains a critical constraint for enterprises, and
especially for Small and Medium Enterprises (SMEs).
Improving access to financial services will require
strengthening the legal and regulatory framework and
financial infrastructure, including the secured transactions
framework, creditor rights and insolvency regime, credit
information sharing system, platform for technology-based
banking products, regulation and supervision of nonbank
financial institutions, and consumer protection in financial
services. To realize fully its economic potential, Mongolia
needs to build a diversified, efficient and stable financial
system, capable of intermediating both on a large scale and
in specific market segments. Due to its focus on the
development agenda, and specifically on access to finance
for the SME sector, capital markets development, and housing
finance market development, this report does not address
financial sector stability issues. Financial intermediation
in Mongolia has grown significantly in recent years; credit
and deposit penetration are on par with the average in the
East Asia and the Pacific (EAP) region. Access to finance is
particularly constrained for SMEs, which are also more
sensitive to an unstable macroeconomic environment,
characterized by high inflation and exchange rate fluctuations.
Citation
“World Bank. 2012. Financial Sector Assessment : Mongolia. © World Bank, Washington, DC. http://openknowledge.worldbank.org/handle/10986/26814 License: CC BY 3.0 IGO.”