ADB, JAPAN TO SUPPORT MONGOLIA RESOLVE BANKING PROBLEMS

Ulaanbaatar. /MONTSAME/. Asian Development Bank (ADB) has said that it will assist Mongolia to implement reforms in the banking sector to promote growth and economic recovery in the wake of the global economic crisis.
The Japan Special Fund, funded by the government of Japan and administered by ADB, will provide a US$ 2 million technical assistance grant to strengthen institutional capacity for banking supervision. It will also review the regulatory environment and help develop guidelines to strengthen corporate governance and improve risk management.
The aim of this project is to establish an improved policy and operating framework for managing risks in the banking sector and to resolve the problem of distressed assets, which in turn will help deliver a broad-based economic recovery.
Mongolia’s economy came under pressure as a result of the global downturn, with copper prices slumping and domestic growth slowing sharply since the end of 2008. This in turn has caused a weakening of the country's financial institutions.
The central bank is the executing agency for the project, which is due for completion by the end of 2012.
S. Batbayar