Mongolia Diagnostic Review of Consumer Protection and Financial Literacy : Volume 1. Key Findings and Recommendations
The Mongolian economy has grown very rapidly following the discovery of significant mineral deposits. Large investments in the mining sector have led to increased capital inflows, resulting in cheap external funding for banks and rapid credit expan...
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| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/344651486022452873/Key-findings-and-recommendations http://hdl.handle.net/10986/26062 |
| Summary: | The Mongolian economy has grown very
rapidly following the discovery of significant mineral
deposits. Large investments in the mining sector have led to
increased capital inflows, resulting in cheap external
funding for banks and rapid credit expansion. Loans to
households increased at the staggering pace of 80 percent
from 2010 to 2011, despite Mongolia’s history of banking
crises. Loans to Small and medium sized enterprises (SMEs)
have increased by some 65 percent in the same year. Although
over 78 percent of adult Mongolians have accounts at formal
financial institutions and over 61 percent have debit cards
- far exceeding the average in the East Asia and Pacific
region - in many respects the legal and regulatory framework
and enforcement have not kept pace with the expansion of
lending. Some important segments of the financial sector,
such as securities and insurance, are still lagging due to
low consumer awareness and low levels of savings. A number
of reforms have been introduced to expand the financial
services market but it is clear that consumer protection and
financial literacy need to be addressed in a more systematic
way. This World Bank’s diagnostic review provides a detailed
assessment of the institutional, legal, and regulatory
framework in three segments of the financial sector:
banking, securities, and insurance. Volume I summarizes the
key findings and recommendations of the review and volume II
presents a detailed assessment of each financial segment
compared to the good practices for financial consumer protection. |
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