Financial Regulatory Commission presents financial market review for 2021 first quarter

Economy
baljmaa@montsame.gov.mn
2021-05-11 14:10:01

Ulaanbaatar /MONTSAME/. A virtual press conference by the Financial Regulatory Commission (FRC) to present the Financial Market Review of the first quarter of 2021 was held on May 6.


The nonbank finance market (including the capital market, insurance, NBFIs, and SCCs) share of GDP reached 17.5% in the first quarter of 2021; made up of:


  • Capital market: 9.9%,
  • Insurance market: 1.1%,
  • NBFIs: 5.7%, and
  • SCCs: 0.8%

The FRC regulated and supervised 3,302 entities, and 2,429 insurance agents. The former consisted of the following:


  • 315 joint stock companies, and 281 professional participants in the securities market,
  • 326 insurance companies, professional participants, and auditors,
  • 530 NBFIs,
  • 249 SCCs,
  • 185 REBs, and
  • 438 DPMS and their 978 branches.

Capital market: 


  • Market capitalization increased by 48.5% to MNT3,695.1 billion, compared to same period in 2020.
  • Liquidation of stocks increased by 1.4 percentage points to 1.8%. The TOP 20 Index increased by 17,732.0 points to 34,635.7 points.

Volume of trading, among the MNT71.8 billion worth of securities, was as follows:


  • Stocks: 91.8%,
  • Asset-backed securities: 5.7%,
  • Investment fund: 1.8%, and
  • Corporate bond: 0.7%.

Trading on agricultural commodities exchange increased by 145.1%; and MNT69.3 billion worth - of five types of goods - were traded.


Insurance market:


  • Total assets increased by 14.6% to MNT401.2 billion, and the reserve fund increased by 9.3% to MNT172.6 billion, compared to same period in 2020.
  • Total premiums, of general and life insurance, decreased by 4.2% to MNT39.0 billion, and total premium of reinsurance decreased by 16.4% to MNT10.9 billion.
  • Total indemnity expenses decreased by 21.3%, and MNT12.3 billion was paid (amounting to 31.6% of total premiums).

NBFIs: 


  • 530 NBFIs operated, and their total asset increased by 17.6% to MNT2.1 trillion.
  • The total balance of loans increased by 11.8% to MNT1.4 trillion, and 48.5% of loan balance was consumer loans.
  • 85.3% of the total loan balance was accounted to by individuals, and 14.7% was entities.
  • Due to the increased loan supply (and the access to loan services) the number of borrowers increased 1.4-fold to 610,100 and the number of total customers was 3.4 million (with double counting). The introduction of products and services based on technology in the market influence the increase of the access of loan service.
  • The monthly weighted average interest rate decreased by 0.1 percentage points to 2.9%.
  • The average loan per borrower was MNT2.3 million.
  • Borrowers of FinTech numbered 362,900 (59.5% of total borrowers), and the average loan per FinTech borrower was MNT270,700.

SCCs:


  • 249 SCCs provided services for their 75,002 members.
  • Total assets increased by 21.5% to MNT278.9 billion. The amount of savings reached MNT201.4 billion (72.2% of total assets).
  • The monthly weighted average savings interest rate decreased by 0.1 percentage points to 1.4%.
  • The monthly weighted average interest rate decreased by 0.7 percentage points to 2.4%.
  • The balance of total loans increased by 11.1% to MNT192.1 billion, compared to same period in 2020. Of total loan balance, 3.64% were non-performing loans.
  • The number of depositors was 40,166, and borrowers were 38,353.

Real estate brokers: 

Entities with licenses issued by the FRC were as follows:


  • 185 entities, and their 206 brokers and 1,219 agents.
  • Through 935 deals (with double counting), 290 REBs/agents bought and sold real estate; amounting to a total area 98,600m2 and a value of MNT127.2 billion.
  • Through 390 deals (with double counting) REBs/agents rented and leased real estate amounting to a total 39,300m2 and a value of MNT2.8 billion.

Dealers in precious metal and stones: 

Entities and individuals with licenses issued by the FRC were as follows:


  • Entities (dealers in precious metals and stones, and dealers in products made of them): 34
  • Individuals (dealers in precious metals and stones, and dealers in products made from them): 58
  • Individuals (dealers in precious metals and stones): 117
  • Individuals (dealers in products made from precious metals and stones): 229

Precious metals with a value of MNT103.6 billion were bought and MNT101.9 billion sold.