Moody's changes outlook on Mongolia banking system to stable from negative

Oyundelger 2017-07-05 03:07

Economy

Moody's Investors Service has changed the outlook on Mongolia's banking system to stable from negative, the international rating service said.

Moody's changes outlook on Mongolia banking system to stable from negative. Moody's Investors Service has changed the outlook on Mongolia's banking system to stable from negative, the international rating service said. The outlook indicates Moody's expectation for how bank creditworthiness will evolve in the country over the next 12-18 months. "Our stable outlook on Mongolia's banking system is based on the fact that the economic program between the IMF and the Government of Mongolia will lead to a less challenging operating environment for the banks," says Hyun Hee Park, a Moody's Assistant Vice President and Analyst. Moody's baseline scenario assumes a marginal decline of 0.2% in real GDP growth for Mongolia in 2017 because the impact from the IMF measures will not emerge until 2018. Moody's forecasts real GDP growth of 1.8% in 2018. Moody's rates seven of the 14 commercial banks in Mongolia, and one government-related policy bank. These banks accounted for 90.1% of total system loans and 91.1% of total system deposits at end-2016.