Saving deposit size of individuals and entities decreased in October.
According to the Bank of Mongolia, money supply (M2) reached 2357.7 billion MNT at the end of October 2008 and it was decreased by 167.3 billion MNT or 6.6% if compares with the previous month, but increased by 1 billion MNT or 4.1% than previous year. Cash reached 329.3 billion MNT at the end of October 2008 and it was decreased by 31.7 billion MNT or 8.8% than the previous month, but increased by 6.2 billion MNT or 1.9% than the same time of previous year. Saving deposits of individuals and entities was decreased by 39.6 billion MNT or 3.6% and reached down to 1072.4 billion MNT. Foreign currency deposit declined by 396.57 billion MNT and it was decreased by 55.3 billion MNT or 12.2% than the previous month, but it is increased by 33.7 billion MNT or 9.3% if compares with the same time of the previous year.
Loan debt remaining to individuals and entities is increased by 39.5% and reached 2691.3 billion MNT. Loan debt remaining for individuals was increased by 38.4%, but it was decreased in private sector by 41.5%, in other entities 2.4 times, in financial organizations by 2.1 times and in state organizations by 9.8%. But the insecure loan debt remaining was increased 16.8 billion MNT or 25.3%. Total insecure loan debt in the banking sector reached 83.3 billion MNT and it scales 3.1% of the total loand debt remaining.
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One Response to “Saving deposit size of individuals and entities decreased in October.”
By Roy Dongen on Nov 18, 2008 | Reply
It is rather logical to read that the saving deposits decreased. Mongolia has a cash based and rather informal economy. Since it is much more difficult to acquire a bank loan, people start to borrow from friends, relatives and others who borrow their money most of the time for a higher interest than before.
Further it is always good to look at statistics a little further than with the nowadays hysterical attitude to make hastily negative conclusions. Foreign currency has dropped in a month but increased nearly 10% on an annual bases!