During the recent examination of the Bank of Mongolia on Anod Bank operation, based on the following malfunction the Bank of Mongolia took control of the management of Anod Bank are as follows:

-    Failure appropriate management of Anod Bank
-    Relatively big amount of saving deposit was transferred to abroad
-    Failure of payback of loan, especially taken by the major shareholders of Anod Bank
-    Insecure loan granting is increased
Also the management of Anod Bank misinformed to the Central Bank about its huge amount of payables.
Bank of Mongolia fully took Anod Bank’s control under its management after detecting that, due to these failures, Anod Bank failed to provide normal service to its customers and loss of its initial capital due to the insecure loan security and appointed its representative.
This special representative will take measures to sustain normal operation, improve its financial situation and securing the saving deposits. Within the framework of this intervention, it will complete the work of registering active and passive capital within three days. Therefore, this registration work will end by December 15 2008. There were some riot and public disorder due to this issue. Therefore, the Bank of Mongolia officially and publicly announced that it was a normal measure for commercial banks. In last two years, there were 5 examinations. As for now Anod Bank’s loan size is 180 billion MNT and its saving deposit is 140 billion MNT.

 

Source: Daily Business News Mongolia

Dec 10, 2008