14 credit and saving cooperatives liquidatedEconomy
Ulaanbaatar /MONTSAME/. On August 13, Financial Regulatory Commission of Mongolia released a financial market report for the second quarter of 2019.
Insurance: The total amount of the capital of the insurance industry in the second quarter of this year reached 354.7 billion MNT, showing an increase by 25.7 percent compared to the same period of last year. Head of the Research and Risk Evaluation Division Ch.Khuderchuluun highlighted the growth of capital circulated in the insurance market as well as an emergence of companies offering double insurance. Last year, double insurance accounted for 16.6 percent of the insurance market and the number reached 20.7 this year. As of today, there are currently two companies engaged in double insurance, 15 companies with regular insurance service, one company of long-term care insurance companies, 49 insurance mediation companies and 27 insurance claims adjuster companies are working. Regular insurance companies composed 76.7 percent of the total insurance market capital and 2.6 percent was of long-term insurance companies. Throughout the given period, the revenue from insurance premiums reached MNT104 billion, increasing by 23.7 percent and 99 percent of which are collected by regular insurance companies.
84.7 percent of total credit balances carried by individuals
Non-banking financial institutions: As of the second quarter of this year, there are 538 non-banking financial institutions operating on the financial market. Most of them or 492 are engaged in credit activities and 8.6 percent are in a foreign currency transaction. In a given period, the total capital of the non-banking financial institutions amounted to MNT1.5 billion, after an increase by 34 percent or MNT389.4 billion from the same period of 2018. 84.3 percent of the total growth of capital was influenced by credits and 47.4 percent are due to growth of stock capitals.
Also, credit balance of those non-banking financial institutions grew by 42.7 or MNT328.4 billion from the second quarter of 2018, totaling MNT1.1 billion. Around 84.7 percent of the total credit balance are carried by individuals and remaining 15.3 percent are of legal entities. The number of borrowers from the non-banking financial companies increased by 2.4 times compared to that of last year and reached 360.3 thousand and the number of their total clients reached 2.3 million thanks to technology-based financial products services offered by the companies. An average interest rate is 3.3 percent.
26 credit and saving cooperatives did not accept saving deposits
Credit and saving cooperatives: During the accounting period, total capital employed by credit and saving cooperatives equaled MNT210.6 billion, showing an increase of 19.6 percent compared to last year. 90.5 percent or a total of 249 credit and saving cooperatives gathered saving deposits of MNT148.4 billion in total and the remaining 9.5 percent or 26 credit and saving cooperatives have not yet accepted any saving deposits. Time deposits take up 97.6 percent and sight deposits make up 2.4 percent of the total deposits in the 249 credit and saving cooperatives. The number of 249 credit and saving cooperatives has decreased by 14. Concerning this, Head of Supervision and Regulation Division B.Dolgorsuren said, some credit and saving cooperatives do not comply with regulations and requirements set by the Financial Regulatory Commission and also, some credit and saving cooperatives are liquidated at their own wills.