Financial Regulatory Commission’s Performance in 2022Economy
Ulaanbaatar /MONTSAME/. The Financial Regulatory Commission (FRC) of Mongolia conducted its annual meeting and assessed performance on December 27.
In his opening speech, the Chairman of FRC Mongolia, D. Bayarsaikhan, indicated that as a result of pursuing flexible and resilient policies in promoting sustainable development of the financial market, 2022 was a productive year, full of achievements for the capital market in Mongolia. In accordance with the preliminary estimates, the market capitalization of the FRC regulatory sectors is going to constitute 25.7% of the GDP. Particularly, Banking Reform is being implemented, and systemically important banks, including the State Bank and Golomt Bank issued IPOs and raised MNT144.2 billion. Capital market capitalization was increased by MNT1.5 trillion, MNT212.4 billion was traded on the OTC market, and MNT89.9 billion was raised by issuing 6 asset-backed securities at the secondary market. Furthermore, the Mongolian Stock Exchange launched the privatization of state-owned companies. In addition, the Amendment to the Insurance Law allows the insurer to issue a guarantee, which enables them to become a guarantor for projects, programs and SME activities. The Draft Revision of the Law on Non-Bank Financial Activities was supported by the Parliament and is now under discussion. In order to protect the interests of NBFI borrowers, regulations on credit activities were newly stipulated, and the debt-to-income ratio was limited to 70%.
As a result of a sound regulatory framework for the green finance market under the “Green Development Policy” adopted by the Parliament, green products and services, including “green insurance,” “green loans,” and “green bonds,” are being newly introduced. D. Bayarsaikhan also acknowledged that the FRC would pay attention to the sustainable development of a multi-pillar and inclusive financial market in 2023.
During the meeting, the Chief Executive of FRC Mongolia, T. Jambaajamts, presented the FRC’s Annual Report.