Trade and Development Bank, Ulaanbaatar City Bank have mergedEconomy
Ulaanbaatar /MONTSAME/. On June 29, it was announced that out of 13 banks operating in the banking sector of Mongolia, Trade and Development Bank (TDB), the oldest bank with 30 years of history and Ulaanbaatar City Bank (UBCB), another systemically important bank with 21 years of history are officially merging.
The Bank of Mongolia approved the merger on June 23, 2020. All assets, liabilities, equities and branches of UBCB will be consolidated into TDB, taking effect from June 29. TDB will further serve all UBCB clients starting from this day.
The statement issued on the website of the TDB reads “Ulaanbaatar City Bank, named after the capital of the country, has been operating successfully for 21 years since 1999, professionally and swiftly providing comprehensive banking and financial services to its customers. The bank has been proudly making the list of the TOP-100 enterprises, announced by the MNCCI every year, and is one of the six systemically important banks in the banking system, as defined by the Bank of Mongolia.”
The statement continues “Merger of large banks is a common practice in the countries with highly developed banking and financial market, and are often carried out to with objectives to scale up their operations, expand their market reach and increase their value. The merger enables banks to improve their efficiency, reduce costs and enable them to offer more flexible terms of products and service to individual and corporate customers by contributing to cut interest rates on the market and promoting inclusion as well as supports them to develop a customer-centric business model.”
“As a result of the merger of two systemic banks, TDB strengthened its capacity by 400 experienced employees, 33 branches and settlement centers, and over 1,900 merchants. Strengthened human resources, expanded customer base and adequacy of bank branches significantly contribute to achieving our strategic goal of closely serving our customers.”
“Moreover, the merger increases the total assets, shareholders’ equity of TDB and improves profitability, liquidity and other key financial ratios and measures. We believe that we will continue to meaningfully contribute to the prosperity of the country through current and future business activities, values we create for our customers, as well as through innovative products and services we will introduce to the market.”