FRC says growth of non-banking financial sector continues

The Financial Regulatory Commission (FRC) underlined that the non-banking financial sector continues to see growth, namely within the nonbanking financial sector, insurance sector, savings and credit unions sector, and the stock market. The growth of these sectors were highlighted during the second quarter statistical report of the FRC.

Head of Research and Risk Research N.Khuderchuluun emphasized how the securities market has increased by 65 percent to reach 2.5 trillion MNT, equivalent to nine percent of the GDP in 2017. As of today, 303 public companies and 54 securities companies have active operations on the Mongolian Stock Exchange (MSE). MSE has said it has observed a 58.6 percent increase in its Top-20 index.

Collectively, MSE and the Mongolian Securities Exchange conducted trading of 77 billion MNT in the second quarter. In primary market trading, MSE conducted trading of 13 billion MNT, 35 billion MNT in the secondary market, 27 billion MNT in government bonds, and 631 million MNT in private placements. Meanwhile, the Mongolian Securities Exchange conducted trading of 248 million MNT in securities.

In regard to the insurance sector, the total assets collectively held by companies 282 billion MNT, representing a 13 percent increase. The amount of money paid out by insurance companies reached 29 billion MNT in the second quarter.

Of the 539 non-banking financial institutions operating in the country, 90 percent have active operations. Total assets held reached 1.14 trillion MNT, a 33 percent increase compared to the same period last year.

In regards to credit and savings unions, 289 had active operations in the second quarter. The number of unions increased by 18 since last year and the total number of members reached 61,177, a 20 percent increase.

While net profits decreased to 1.1 billion MNT, a 30.6 percent fall in profits, total revenue increased by 37 percent to reach 19.3 billion MNT. The total amount of money loaned increased by 27 percent to reach 134 billion MNT. In addition, the amount of savings also surged by 51 percent.