Mongolia’s Financial Institutions Toughen Regulations Amidst Economic Stability Efforts

Introduction

The Financial Stability Council (FSC) is a joint body established by the Central Bank of Mongolia (BoM), Ministry of Finance (MoF), and the Financial Regulatory Committee (FRC). The council plays a crucial role in safeguarding Mongolia’s financial markets.

Council Objectives and Structure

Primary Objective

• Identify and manage potential financial risks to ensure that all sectors operate within existing laws and regulations.

Steering Committee

• Comprises the Governor of the Central Bank, Minister of Finance, and Chairman of the Financial Regulatory Committee.
• Unique in Mongolia as the first of its kind.

Research Unit

• Responsible for investigating solvency issues affecting banking, non-bank financial institutions, securities, and insurance markets.
• Regularly releases findings to the public, empowering informed decision-making capabilities.

Quarterly Meetings

• Provide a platform for the Steering Committee members to assess internal and external factors that may impact financial stability.
• Enable policymakers to develop targeted strategies for mitigating identified risks.

International Cooperation and Best Practices

• Established in line with international best practices, fostering cooperation with global financial institutions.
• Implementing best practices in areas such as banking, financing, accounting, and auditing to enhance the competitiveness of Mongolia’s banking and financial sectors on the world stage.

Transparency and Financial Stability Reports

• Publishes a Financial Stability Report every six months, detailing balance sheets and analyses of financial institutions.
• Commitment to transparency ensures that individuals and entities have access to informed information.