Bank listing marks Mongolian economic evolution
A story from the January 2024 edition of The Steppe
Bank listing marks Mongolian economic evolution
When diving into the Mongolian economy, banks aren't typically the first splash investors make – it’s usually mining. But the tide is turning as all five of the nation’s systematically important commercial banks have now been listed.Â
XacBank LLC, Khan Bank, Trade & Development Bank (TDB), Golomt, and State Bank, are now listed in compliance with Mongolia’s updated banking code, which was adopted in 2021. The code requires SIBs to be listed and limits shareholding rights to 20%. As the nation seeks to diversify its asset base beyond mining, the stock exchange is seen as a platform for investment in various sectors.Â
The move is expected to enhance transparency and governance in the banking system while promoting shareholder diversification. Still, the sector grapples with undercapitalization and regulatory gaps, underscoring the importance of ongoing reforms.