TransBank
It has been a busy year for all lenders, but particularly for TransBank. It increased its share capital in the first nine months of 2020 by Tug22 billion, to Tug72 billion ($25 million): this boosted its capital adequacy ratio to 43.48% from 31.5%, and made it Mongolia’s second-highest capitalized lender. The increase brings it in line with central bank demands and improves not only its risk tolerance, but also its ability to deliver the right services to the right customers.
Who are these clients? They are overwhelmingly small and medium-sized enterprises. At the end of September 2020, Tug136.4 billion or 52.3% of its total loan portfolio of Tug260.8 billion was held by SMEs: TransBank wants to increase that share to 80%.
Speaking to Asiamoney in November, senior executives spelled out their achievements and aims. “We are the only bank taking this kind of strong approach to small businesses,” one of them told Asiamoney.
Its approach shows up in its figures. In the 12 months to the end of September, TransBank disbursed Tug96.8