BANKING SECTOR REVIEW: 3rd quarter of year 2023

Times are not always the same, the iris is not always blue.

The indicators of the banking sector were relatively stable and growing. The total assets of the banking sector increased by 18% compared to the same period previous year. More consumer loans were granted to individuals, while business loans have increased in sectors except the mining sector. Non-performing loans are decreasing. Due to stabilization of inflation rate and appreciating of MNT exchange rate, MNT savings return exceeded foreign currency savings returns.

Also recovery of the mining and transport sector had a positive impact on economic growth by 6.9%. Due to the weather conditions, the agricultural sector experienced a decline and the growth of other sectors was relatively weak.

The increase in the export of mineral products from the beginning of the year had a significant effect on the increase of foreign exchange reserves, while the economic conditions of the external environment improved, costs related to transportation and logistics decreased, and the steady growth of imports had a significant effect on the stability of the exchange rate.

A profitable balance of payments has increased foreign exchange reserves and improved the purchasing power of MNT. Profits in balance of payments have relieved pressure on the government budget deficit.

The price and demand of mineral products from mining are not constant during periods of growth like this year, so if we do not take measures aimed at supporting other sectors, there is a high risk that the price of mineral products will drop one day and the demand will decrease, and the economy will fall into disrepair.


  • Banks’ loans provided to individuals are increasing. Lending to sectors other than the mining sector increased.
  • The loan quality of banks is improving.
  • Sources of banks are increasing.
  • Systemically important 5 banks financial indicator is growing.
  • Systemically important banks have doubled their stock market value by issuing shares.
  • MNT deposits have overtaken foreign currency deposits.

Please click Here to see the full version of the review in ENG.

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