Last Friday, the National Financial Market Development Forum was organized at the State Palace to find solutions for improving the nation’s financial market.
The forum touched on all issues concerning the financial sector, including the development of inter-sectoral communication, support of fair competition, strengthening of the public’s trust in the market, and increasing the sector’s efficiency.
In his opening remark, Speaker of Parliament Z.Enkhbold underlined that Mongolia’s financial sector makes up 4.7 percent of GDP. He specified that four percent of GDP is made up by banks, while 0.7 percent is made up of other financial organizations. He noted that the current development of the nation’s financial sector is insufficient according to international standards.
“Last week, 34 percent of Mongol Post was successfully traded at the Mongolian Stock Exchange. I believe that this was a positive event that shows broad opportunities of domestic companies for expanding their activities and upgrading their technology by drawing in inexpensive investment resources from the stock market. Even though Mongolia’s external and internal economic conditions were facing difficulties in the past, we traded more last year than we had in the past 25 years,” said Z.Enkhbold.
The Speaker highlighted that many measures need to be taken in the future to expand stock companies’ share in the economy, merge business organizations with common interests into a public company, revise the tax policy, and improve the quality of stock market products.
Head of the Financial Regulatory Commission (FRC) Z.Narantuya noted that the FRC has worked with the World Bank on its long-term comprehensive development program for Mongolia’s financial market through 2025.
The forum participants discussed long-term development strategies for the financial market, exchanged views on issues related to the nation’s investment environment, and shared views to find solutions for reducing poverty and tackle legal issues of banking and insurance sectors. They also discussed issues related to the stock market, corporate governance, auditing, and legislation on investment.
The forum was organized by the FRC with financing from the Asian Development Bank and Japan Fund for Poverty Reduction. Over 600 participants from domestic and international organizations took part in the national forum, including representatives from banks, financial organizations, insurance companies, those active in the stock market, financial policymakers and researchers.