Ulaanbaatar
Total Assets of Banking Sector Rise by 15 Percent
Economy
Ulaanbaatar, September 4, 2025
/MONTSAME/. Mongolia's banking sector remains relatively stable and
continues to grow, with total assets increasing by 15 percent compared to the
same period last year.
During the presentation of the
Banking Sector’s Semi-Annual Review for 2025, Executive Director of the
Mongolian Bankers Association, Amar Lkhagvasuren, highlighted that
bank-issued loans continue to play a significant role in supporting economic
recovery.
Moreover, newly issued loans to
businesses have increased by 19 percent year-over-year. As a result, the share
of non-performing business loans has declined, and both individuals and
enterprises have begun shifting their funds into term deposits. Despite the
depreciation of the Mongolian tugrug, public confidence in the national
currency remains strong, which has contributed to a 15 percent increase in tugrug-denominated
deposits.
Mongolia’s economy grew by 5.6
percent in the first half of this year. The agricultural sector has demonstrated
a strong recovery, becoming the primary driver of economic growth. In contrast,
the mining sector performed below expectations, which negatively impacted
related sectors such as trade and transportation, thereby slowing overall
growth. Additionally, the decline in commodity prices has led to a reduction in
export volumes, placing pressure on the national currency.
Revenue from taxes on mining
products has decreased by 12.3 percent, contributing to a decline in overall
budget revenues. Recurrent expenditures continue to account for the majority of
total government spending, and the fiscal balance currently shows a deficit of MNT
758 billion.
Senior Economist at the Banking
and Finance Academy, Sosorbaram Chingel, emphasized, “When formulating the
state budget, it is essential to carefully assess both internal and external
risk factors, ensure coherence between fiscal and monetary policies, and
support the real economy. Otherwise, we risk creating a system in which the
recovery of one sector leads to the decline of others.”
