Mongolia: Credibility challenge: "In a September report, the IMF praised Bank of Mongolia (BoM), the central bank, for increasing its policy rate by 225 basis points to 13.25% and its reserve requirements by 700 basis points to 12%, stating that tightening measures have been associated with a considerable slowdown in credit growth.
“The capitalisation and profitability of the banking system have risen, and the outstanding stock of non-performing loans has declined in absolute terms,” the IMF wrote. The fund also praised the BoM for raising the liquidity ratio to 25% from 18% and requiring the five main banks to raise their capital adequacy ratios to 14% from 12%.
In August, the National Statistical Office reported that non-performing loans reached MNT312.3bn ($243.5m), an increase of MNT6.6bn ($5.14m), or 2.1%, compared to the previous month, and a decrease of MNT63.6bn ($49.6m), or 16.9%, compared to same period of 2011."
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