35913-014: MON: INVESTMENT IN TRADE & DEVELOPMENT BANK

Project Data Sheet (PDS): Details

Description

The objectives of the proposed investment include, (i) increased financial sector stability through bolstering the confidence in one of Mongolia's most important financial institutions and by extension in the whole sector, to be achieved through demonstrating to other potential investors and the banking public that ADB has confidence in the strategy and management of the market leader, and (ii) to open an avenue for feedback that ADB can utilize in evaluating the efficacy of past and ongoing initiatives in financial sector reform and development undertaken by its public sector operations.

Implementation Progress

Status of Development Objectives

The privatization of Trade and Development Bank ( TDB ) has been successful. ADB assistance in TDB has contributed in creating an atmosphere of confidence for foreign investors in the banking sector. ADB, through its public sector window has continuously provided support to the Government of Mongolia ( GOM ) to develop a sound and broad-based financial sector through its program loans and technical assistance grants. As of 31 December 2005, there are around 17 commercial banks operating in Mongolia. Total assets of these banks have grown from 29.5% in 2004 to 42.3% in 2005. In view of significant changes in 2001 on loan regulation and collateral, net loan growth jumped from 28% in 2004 to 51.1% in 2005. TDB s market position has improved compared to year-end 2004. As of year-end 2005, TDB accounts for 19.7% market share of total assets, 20.8% market share of deposits, 32.1% market share of foreign assets and 19.2% market share of loans outstanding. TDB has demonstrated strongest earnings from among the seven biggest banks in Mongolia

Safeguard Categories

Environment: FI
Involuntary Resettlement:
Indigenous Peoples:

Project Sponsor

Gerald Metals, Inc.

 

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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