Source: Eurasia Capital                    Date: 03 June, 2011

Both the banking and non-bank financial sectors are set to grow rapidly, their representatives told the Mongolia Investment Conference last week. Trade and Development Bank President Randolph Koppa stated that bank loans grew 35% y-o-y in Q12011 and the annual figure is expected to be 50%. Mr. Batzaya of Khan Bank said its assets would double in 2011 and so there will be enough seed money for fresh loans.

Banks represent 95% of the Mongolian financial sector, but Tenger Financial Group CEO Mr. Bold said the non-banking sector is also ready to take off in a big way. Once the pension and insurance markets are restructured, they would attract investors. With per capita income estimated to rise dramatically, the insurance sector in particular would offer several opportunities for innovation and expansion. Leasing is another interesting area, he added, though the concept is yet to fully develop.