Local financing is possible for foreign invested companies in two ways. Jointly entering a business with Mongolian investors, or directly from Mongolian financial institutions.
The banking and financial services sector have developed rapidly since Mongolia has transitioned from Socialism to Democracy in 1990, where the first private bank had opened its doors. Now, the banking sector is a competitive market with over thirteen different commercial banks, and currently Khan Bank, Trade and Development Bank and Golomt bank are the big players, dominating the market in terms of lending. There are still no fully licensed foreign banks here in Mongolia. Commercial interest rates are high for local currency. As of October, 2018, Khan Bank was offering weighted average interest rate of 8.5% per annum on loans on foreign currency, while in contrast, 17.4% on local currency of MNT or Tugriks to individuals and businesses.
In 2011, the Mongolian Stock Exchange or MSE has established a partnership with the London Stock Exchange Group (LSEG) and the two continues to exchange in cooperation to further develop MSE’s capabilities.
There are over 197 enlisted member companies under MSE as of June 2019. Below is the 2018 summary of total trades on MSE.
