Loan interest of non-bank financial institutions to be lowered
The Financial Regulatory Commission /FRC/ announced its policy task to lower loan interest rate of non-bank financial institutions twice in upcoming four years.
Loan interest of non-bank financial institutions are to be lowered. The Financial Regulatory Commission /FRC/ announced its policy task to lower loan interest rate of non-bank financial institutions twice in upcoming four years. Regarding non-bank financial institutions, which run credit service the amount should be two times higher than previous level. Mid-term strategy of the commission is to develop financial sectors through making policy regulations in financial market. Within this policy, the first decision was to increase share capital. Increased capital is important to ensure stability in financial market when economy faces difficulties, to improve capacity and accessibility of nonbank-financial institutions and to protect rights of customers as well as it will give actual influence to decrease loan interest rate. Financial regulatory commission noted that capable non-bank financial institutions will be supported giving possibility to re-lend loans to SMEs and other soft loans. It is estimated that after four years’ efforts total loan amount by non- bank financial institutions could reach to MNT1.7 trillion, making more than 10 per cent of total loans by commercial banks.
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