RPT-Fitch: Mongolia's Savings Bank Failure Highlights Fragile System | Reuters: "Last week's failure of Mongolia's fifth-largest lender, Savings Bank, highlights Mongolia's deteriorating business environment and weaknesses in corporate governance and regulation of the banking sector, Fitch Ratings says. Key pressure points are brisk loan growth on the back of the government's subsidised loan scheme; currency depreciation; and weaknesses in the construction and mining sectors. Domestic depositor confidence in the banking system remains intact, and has so far prevented a systemic crisis.
Savings Bank's failure highlights the mining and construction sectors as the central pressure points for the banking system - given the slow mining production and rapid decline in copper and property prices."
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