Bank of Mongolia
| Headquarters | Ulaanbaatar |
| founding | April 2, 1924 |
| country | Mongolia |
| currency | |
| ISO 4217 | MNT |
| Website | |
| List of central banks | |
The Bank of Mongolia or Mongolbank is the central bank of Mongolia. The main objective of the Bank of Mongolia is to ensure the stability of the Mongolian tugogrongs. Within its main objective, Mongolia promotes balanced and sustainable development of the national economy by maintaining the stability of money, financial markets and the banking system.
history
On June 2, 1924, a Mongolian-Russian bank with a single branch was opened in Altanbulag . At that time, the bank's total capital was 260,000 yanchaan , also known as Chinese silver dollars. There were 22 employees, of which 18 were Russians and 4 Mongolians. In the beginning, the bank had two names: Commercial and Industrial Bank of Mongolia and Bank of Mongolia. The latter designation was used in official documents. Trading took place in Yanchaan and with the Mexican silver dollars customary in China . Securities were also used for payments and transactions.
On November 26, 1924, the Mongolian People's Republic was founded as a satellite state of the Soviet Union (USSR) and introduced as the currency of the Tögrög on February 22, 1925 . At that time, the exchange rate for $ 1 was 1375.61 tögrög. In 1954 it was renamed the State Bank of Mongolia. Until 1990, the Törög was tied to the Soviet ruble in a ratio of one to one , and the state budget and the economy were completely dependent on the USSR. In parallel with the Soviet central administration economy , the banking and monetary system was guided by interventions . As a state financial institution, the status and functions of Bank of Mongolia were not clearly defined by the legal system.
New beginning after 1990
With the collapse of the Soviet Union , the dependence of the Mongolian economy on the Soviet Union ended, which enabled the economic system to be reformed. The planned economy was replaced by the market economy . The banking system has continuously adapted to the laws of the free market. In 1991 the first banking law came into force, on the basis of which a two-tier banking system, consisting of private commercial banks and the Bank of Mongolia, was created. The reforms of the financial and economic system continued in the 21st century. By the end of 2009 there were already 14 commercial banks in Mongolia. By the end of 2013 alone, these credit institutions had total assets of around 103 billion US dollars, which corresponded to 95% of Mongolia's total assets.
In May 2009, the Central Bank of Mongolia introduced the Real Time Gross Settlement (RTGS) as part of the financial infrastructure modernization project. The transmission of the "bank network" RTGS was a significant advance in maintaining the interbank's secure, fast and effective payment system for the frequent transactions.
Organizations
General administration
In order to implement the Central Bank Act and to maintain the stability of the banking system, the general administration of the BOM organizes the day-to-day work of the central banks and branches and acts as a representative.
"Internal Control and Operational Risk Management" department
It is the policy of the Bank of Mongolia to establish and support an Internal Control and Operational risk management department (ICORMD) as an independent assessment function in order to support the activities of the Bank of Mongolia as a service to management and to review and evaluate the board of directors. The department carries out its activities according to audit plans approved by the governor after review by the board of directors.
"Monetary Policy and Research" Department
The Monetary Policy and Research Department is responsible for formulating and implementing monetary policy, compiling monetary and banking statistics, coordinating and organizing the survey, putting money into circulation and managing state reserves as part of its main objectives.
"Supervision" department
Supervision currently has 3 divisions: Off-site Inspections, On-site Inspections and Policy Regulation Division. The on-site inspections division is responsible for the local comprehensive and partially targeted inspection of commercial banks. The central bank typically conducts at least one comprehensive audit of each bank each year.
"Payment and Invoice" department
The functions of this department are to develop Mongolia's payment system according to the international standard, ensure reliable and smooth functioning of interbank payments and settlements, and ensure accounting and financial reporting in accordance with International Accounting Standards and International Financial Reporting Standards .
Banknote department
The tasks of this department are to carry out the activities of the central bank for the issue of Mongolian currency and for increasing and securing the treasury of Mongolia.
Legal Department
The purpose of the legal department is to ensure legal certainty for the implementation of the functions of the Central Bank (Mongol Bank), guaranteeing the rights of bank customers and custodians, protecting against possible risks to the banking system and direct activities to create a suitable legal environment for long-term and stable activities.
"Information Technology" Department
The IT department is responsible for defining BOM's IT policy. She is also responsible for establishing advanced technologies, providing the reliable IT environment and developing rules and recommendations with a view to reducing IT risks to the banking system.
Risk management unit
The risk management unit is responsible for safeguarding the Bank of Mongolia with regard to financial and operational risks.
General duties of the Bank of Mongolia
- Issue of currencies in circulation;
- Formulation and implementation of monetary policy by coordinating the money supply in the economy;
- Fellowship as Minister of Finance of the Government;
- Supervision of banking operations;
- Organization of bank transfers and their processing;
- Management of the currency reserves of the state
Individual evidence
- ↑ Gėndėngiĭn Tseredulam, David R. Pichaske: P. Genden. To the Memory of My Father. ADMON Printing & Publishing, 2000, p. 21.
- ↑ Otgontogtool Tserenchimed: Studies on the reform of the Mongolian state administration. Dissertation, Free University of Berlin, 2009, p. 66.
- ↑ Bank of Mongolia, History of Mongolian currency accessed on January 29, 2017.
- ↑ Saruul Agwaandorjiin: democratization opportunities in Mongolia. Tectum Verlag, 1999, p. 48 f.
- ↑ Masaru, Banking Sector Transition in Mongolia Since 1990, accessed on January 29, 2017
- ↑ EUROMONEY, July 2014, Mongolia aims for a brighter banking future, accessed on January 29, 2017
- ↑ International Briefing In Heinonline.org, accessed on January 29, 2017
- ↑ Masaru, Banking Sector Transition in Mongolia Since 1990, accessed on January 29, 2017
- ↑ National Statistics Office of Mongolia accessed January 29, 2017
- ↑ THE BANK OF MONGOLIA, RTGS SYSTEM, (RTS / X) accessed on January 29, 2017
- ↑ Bank of Mongolia Payment and Settlement System in Mongolia , accessed January 29, 2017
- ↑ Bank of Mongolia Departments , accessed January 29, 2017
- ↑ Bank of Mongolia Departments , accessed January 29, 2017
- ↑ Bank of Mongolia Departments , accessed January 29, 2017
- ↑ Bank of Mongolia Departments , accessed January 29, 2017
- ↑ Bank of Mongolia Departments , accessed January 29, 2017
- ↑ Bank of Mongolia Departments , accessed January 29, 2017
- ↑ Bank of Mongolia Departments , accessed January 29, 2017
- ↑ Bank of Mongolia Departments , accessed January 29, 2017
- ↑ Bank of Mongolia Departments , accessed January 29, 2017
- ↑ Bank of Mongolia The Bank of Mongolia , accessed January 29, 2017