Central bank of Mongolia: Are the commercial banks reliable enough?
Mongolian development fund has 455.1billion MNT. This money is stored in Mongol banks private account with an interest of 0.5% a year. The government is planning to locate half of this amount in commercial banks. By doing this the government could make 31.8billion MNT revenue on interest rate. Some of the MPs are against this as they think the history will be repeated. They believe there are huge risks as Ard and Sergeen Bosgolt banks were bankrupt previously. They could earn huge fortune by locating this money in commercial banks or the money can stay as it is where it can be safe. Question – Can we rely on the commercial banks?
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2 Responses to “Central bank of Mongolia: Are the commercial banks reliable enough?”
By Ulsaa on Nov 20, 2008 | Reply
It is very unacceptable since the commercial banks haven’t got the trusted funds and their policy is too risky and too dangerous.It can be profitable for the government but still too risky if the commercial banks go bankrupt.
By Tuguldur on Nov 22, 2008 | Reply
If our government doesn’t believe in Combanks, who is going to?