Negative outlook for Mongolia banking, says Moody's | 11 April 2013 | Stock Market Wire: "Further underpinning the negative outlook is the presence of various structural features, such as high loan concentrations, weak risk-monitoring systems, and the developing character of the regulatory framework.
Moody's detailed the change in outlook in its first 'Banking System Outlook: Mongolia'. The outlook expresses Moody's expectations for the fundamental credit conditions in the system over the next 12-18 months.
Moody's analyst and report author Hyun Hee Park said: "Mining and government spending have become the two dominant sources of economic growth behind the current double-digit growth rates of gross domestic product (GDP) and loans, and these concentrated growth drivers raise overheating concerns and undermine the banks' ability to diversify their loan portfolios."
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