Major Projects in Mongolia

Market-oriented reforms of financial secotr were introduced in the 1990s. The banking sector, however, experienced a major crisis in the mid-1990s owing to accumulated non-performing loans. The banking sector has recently been growing strongly, in line with the economiy as a whole and supported by a range of finaicial sector reforms. But, the sector is still exposed to a range of potentially significant risks. Thus, this project has aimed at strengthening the corporate governance in commercial banks by supporting improvements to banking supervision by Bank of Mongolia.