Mongolian banks to benefit from government’s improve support capacity

Eight banks retained their stable outlooks, according to Moody’s Ratings.

Mongolian banks’ have a better outlook on the horizon amidst improvement in its government’s financial management.

Eight banks— Bogd Bank, Khan Bank, State Bank, XacBank, Golomt Bank, Trade and Development Bank of Mongolia (TDBM), Development Bank of Mongolia (DBM), and Capitron Bank— are expected to benefit from the improvement operating and retained their “stable” outlooks, reports Moody’s Ratings.

Golomt Bank and TDMB will benefit from the government’s “improved capacity to support.”

DBM also benefits from the expansion of government support uplift.

The probability of default is also lower for the banks’ operation obligations, Moody’s said.

Moody’s Ratings had earlier upgraded the government of Mongolia’s issuer rating from B3 to B2, noting the country’s improved debt and fiscal management, significant consolidation of its debt burden, and prudent liability management.