Opening the discussion, Parliament Speaker Zandanshatar Gombojav remarked, “Legal reform of the banking sector was rather successful in the last two years. As for this year, we are planning on increasing the risk-bearing ability of commercial banks and introducing a re-capitalization system. The key objective of this discussion is to create proper public expectations by regulating false news, the effects of politicization, and improper assumption driven by subjectivism, as well as discussing the opportunities to stabilize and reduce dollarization and improve public trust on MNT.”

He added, “We do not want the Parliament to be a stage for populism or dispute. Therefore, the Law on the Parliamentary Procedures has to be amended to fit the common practices of other countries.”

Later on, the Governor of the BoM Bayartsaikhan Nadmid disclosed that the bank has prepared a plan on the back of the AQR and other reports on commercial banks, which states to include the AQR on bank reports, improve non-performing asset management system, and ensuring the stability of banking sector by adopting a re-capitalization system.

As of today, 44.6 percent of total equity in the banking system accounts for foreign assets and foreign investment in systematically important banks stands at 43.6 percent. Thus, a spokesperson of the University of Finance highlighted the need to address foreign stateowned banks. At the end of the discussion, the organizers prepared a list of issues that need immediate attention. In the external sector, import inflow, foreign debts, interest repayments, dividends, and import service costs remain high. As for real sectors, officials suggested that foreign investment is required in increasing economic diversification, which will help raise public income with less pressure on inflation and boost market competition.

With an aim to promote the BoM policies, activities, economic outlook, and research results, authorities are planning to hold the Think Bank discussion annually.