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Progress of Mongolian Microfinance: A Case Study of Khan Bank and XacBank

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  • Orosoo Dulamragchaa

    (Department of Agricultural and Resource Economics, University of Tokyo)

  • Yoichi Izumida

    (University of Tokyo)

Abstract

This paper examines the activities of Mongolian financial intermediation and the factors influencing the progress of Mongolian microfinance. These were evaluated using data from household surveys in selected areas, financial statements of Khan Bank and XacBank, and information obtained from interviews with officers of said banks. The analysis found that the performance of these two banks improved significantly. Moreover, Mongolian microfinance advanced as innovative methods were introduced. The new concept of collateral is considered the most important development. Loans secured using various kinds of collateral and guarantee are effective in heightening loan recovery in Mongolian microfinance.

Suggested Citation

  • Orosoo Dulamragchaa & Yoichi Izumida, 2011. "Progress of Mongolian Microfinance: A Case Study of Khan Bank and XacBank," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 8(2), pages 29-41, December.
    • Handle: RePEc:sag:seajad:v:8:y:2011:i:2:p:29-41
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