Mongolia's banking sector remains relatively stable and continues to grow, with total assets increasing by 15 percent compared to the same period last year.
During the presentation of the Banking Sector’s Semi-Annual Review for 2025, Executive Director of the Mongolian Bankers Association, Amar Lkhagvasuren, highlighted that bank-issued loans continue to play a significant role in supporting economic recovery.
Moreover, newly issued loans to businesses have increased by 19 percent year-over-year. As a result, the share of non-performing business loans has declined, and both individuals and enterprises have begun shifting their funds into term deposits. Despite the depreciation of the Mongolian tugrug, public confidence in the national currency remains strong, which has contributed to a 15 percent increase in tugrug-denominated deposits.
Mongolia’s economy grew by 5.6 percent in the first half of this year. The agricultural sector has demonstrated a strong recovery, becoming the primary driver of economic growth. In contrast, the mining sector performed below expectations, which negatively impacted related sectors such as trade and transportation, thereby slowing overall growth. Additionally, the decline in commodity prices has led to a reduction in export volumes, placing pressure on the national currency.
Revenue from taxes on mining products has decreased by 12.3 percent, contributing to a decline in overall budget revenues. Recurrent expenditures continue to account for the majority of total government spending, and the fiscal balance currently shows a deficit of MNT 758 billion.
Senior Economist at the Banking and Finance Academy, Sosorbaram Chingel, emphasized, “When formulating the state budget, it is essential to carefully assess both internal and external risk factors, ensure coherence between fiscal and monetary policies, and support the real economy. Otherwise, we risk creating a system in which the recovery of one sector leads to the decline of others.”

Published Date:2025-09-04