Almost every Mongolian knows Peter Morrow, Chief Executive Officer of Khan Bank, one of the top banks in Mongolia. He, who generously contributes to Mongolian art and sometimes called as “a tough” man, has lived in Mongolia for many years and has almost become a Mongolian. Lately there has been a talk in public that “he is going to resign his post of Chief Executive Officer of Khan Bank”. He accepted my request to interview him about his life in Mongolia, his achievements and future plan.

It’s been ten years since you started your life in Mongolia. I want to start the interview about your first impressions about Mongolia?
I saw the offer as a carreer opportunity and challenge and I started my work under two years’ contract. When I first came to Ulaanbaatar there wasn’t much to enjoy. It appeared to be an old regional socialist city with obvious issues as air quality and infrastructure. But in 10 years there have been a lot of improvements. Although the last two years have been difficult Mongolia grew rapidly for the past ten years. The city looks much different; it has much growth and lot of money, cars, more buildings and much more activities.

Please can you provide some reason to your choosing of Mongolia? It was kind of strange that foreigner to manage Mongolian bank?
- The decision was made in an agreement between the Government of Mongolia, Bank of Mongolia, USAID and the World Bank. The decision was agreed to bring in a foreign management team and independent Board of Directors. Bank of Mongolia particularly insisted on bringing foreign manager, someone who has experience dealing with problem banks and someone who would be free from political interference.

It is said that you are an expert in the industry. How about your first career? What business would have you been running if you didn’t come to Mongolia?
Right after the University I worked for the Export and Import Bank, US Government bank in Washington DC. Then I worked for commercial banks in Chicago and South West in Phoenix for many years. I was running a consulting company at that time which I stopped to come here. If I hadn’t have come here I would continue my consulting.

Business News Europe

Clare Nuttall in Almaty
October 3, 2008

Emigrating to outer Mongolia to manage a failed agricultural bank is hardly an obvious career move, but it worked for Peter Morrow. Eight years after he took the helm, Khan Bank is Mongolia's largest lender by assets and has expanded from its rural roots into corporate and institutional banking. International expansion is now on the agenda.

Khan Bank's origins go back to the Soviet-era State Bank of Mongolia, which was broken up in 1991. In the carve-up of the former monopoly, Khan Bank took over most of its offices in Mongolia's provincial capitals and rural areas. But the government's ambitious plans for a private sector banking industry collapsed in the 1990s with the failure of the entire system.

Morrow attributes this to a complete lack of experience. "Before 1991, there were no real banks, no understanding of credit risk or other issues, and no modern technology," he says. With 30 years in the banking industry under his belt, he was invited to take over Khan Bank in 2000, when it was already in receivership. The Mongolian government had decided the bank had to be kept alive because it was the only one with a sizeable presence in rural areas, where it handled tax collection, pensions distribution and other services.

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