Financial Sector Development in Mongolia: A Review of 41 Loan, Technical Assistance, Grant, and Equity Approval Projects

Mongolia has undergone significant financial sector development over the past three decades. The following report provides an overview of 41 loan, technical assistance (TA), grant, and equity approval projects related to the financial sector in Mongolia from 1991 to 2020.

Project Categories

The projects are categorized into six sub-sectors:

Banking and Payment Systems

The banking and payment systems sector has received significant attention with 7 projects aimed at strengthening the sector’s regulatory framework, improving supervision, and enhancing financial stability.

Project 1: Implementation of Bank Restructuring Strategies (1996-1997): This project focused on restructuring banks to improve their solvency and liquidity.
Project 2: Strengthening the Supervisory and Restructuring Capacity of the Bank of Mongolia (1996-1997): The project aimed at strengthening the supervisory capacity of the central bank to ensure effective regulation of the banking sector.
Project 3: Strengthening Restructuring of the Banking System (1999-2004): This project focused on restructuring the banking system to improve its stability and reduce risks.
Project 4: TA to Support Privatization in the Banking Sector (2002): The project provided technical assistance to support privatization efforts in the banking sector.
Project 5: Establishing an Effective Anti-Money Laundering Regime (2004-2007): This project aimed at establishing an effective anti-money laundering regime to prevent financial crimes.
Project 6: Policy and Institutional Support for Banking Sector Systemic Risk Management (2009-2015): The project provided policy and institutional support to improve the banking sector’s systemic risk management capacity.
Project 7: Banking Sector Rehabilitation and Financial Stability Strengthening Program (2017-2020): This project focused on rehabilitating the banking sector and strengthening financial stability.

Finance Sector Development

The finance sector development sector has received significant attention with 10 projects aimed at improving the regulatory framework, enhancing market infrastructure, and promoting financial inclusion.

Project 12: Institutional Strengthening of the Financial Sector (1993-1995): This project focused on strengthening the institutional capacity of the financial sector.
Project 13: Improving Accounting and Auditing Systems (1995): The project aimed at improving accounting and auditing systems in the financial sector.
Project 14: Development of a Regulatory Framework for Nonbank Financial Institutions (1997-2000): This project focused on developing a regulatory framework for nonbank financial institutions.
Project 15: Improving Accounting and Auditing Systems (1997): The project aimed at improving accounting and auditing systems in the financial sector.
Project 16: Strengthening Financial Sector Development (2000): This project focused on strengthening financial sector development.
Project 17: Third Financial Sector Program (2003-2005): The project provided support to the third financial sector program.
Project 18: Capacity Building for Financial Sector Reforms (2005): This project aimed at building capacity for financial sector reforms.
Project 19: Strengthening Banking Sector Stability and Performance (2020-Ongoing): The project focuses on strengthening banking sector stability and performance.
Project 20: Transformational Mobile Banking Services (2009-2016): This project promoted transformational mobile banking services.
Project 21: Public–Private Partnership Development (2010-2013): The project aimed at developing public-private partnerships.

Housing Finance

The housing finance sector has received limited attention with only 1 project focused on improving the financial sector’s ability to provide housing finance.

Project 29: Housing Sector Finance (2000-2001): This project aimed at improving the financial sector’s ability to provide housing finance.

Insurance and Contractual Savings

The insurance and contractual savings sector has received limited attention with only 3 projects focused on strengthening social security systems and pension reforms.

Project 30: Administrative Reform of Social Insurance (1995-1999): This project aimed at reforming the administrative structure of social insurance.
Project 31: Strengthening Policy for Social Security Reform (2001-2004): The project focused on strengthening policy for social security reforms.
Project 32: Strengthening the Pension System (2006-2009): This project aimed at strengthening the pension system.

Microfinance

The microfinance sector has received limited attention with only 3 projects focused on promoting employment generation and rural finance.

Project 33: Employment Generation Project (1993): This project aimed at generating employment.
Project 34: Institutional Enhancement for Employment Generation (1993-2000): The project focused on institutional enhancement for employment generation.
Project 35: Rural Finance (2000-2001): This project promoted rural finance.

Money and Capital Markets

The money and capital markets sector has received limited attention with only 4 projects focused on developing the stock exchange, promoting market infrastructure, and enhancing financial inclusion.

Project 36: Advisor to Mongolian Stock Exchange (1991-1993): This project provided advisory services to the Mongolian stock exchange.
Project 37: Training for the Mongolian Stock Exchange (1991-1993): The project focused on training for the Mongolian stock exchange.
Project 38: Capital Markets Development (2008-2011): This project aimed at developing capital markets.
Project 39: Government Bond Market Development (2011-2014): The project focused on developing government bond markets.

Small and Medium-Sized Enterprise Finance and Leasing

The small and medium-sized enterprise finance and leasing sector has received limited attention with only 2 projects focused on promoting entrepreneurship and financial inclusion.

Project 40: Support to Small and Medium Enterprises (2015-2018): This project aimed at supporting small and medium enterprises.
Project 41: Financial Inclusion for Micro, Small and Medium-Sized Entrepreneurs (2020-Ongoing): The project focused on promoting financial inclusion for micro, small and medium-sized entrepreneurs.

Note: The projects listed are based on publicly available information and may not be comprehensive or up-to-date.