Mr. Peter Morrow, Chief Executive Officer of Khan Bank, sees the economic situation is Mongolia as “starting to stabilize” and thinks it is a good time for banks to start lending again. “If an economy is going to grow,” he told The Mongol Messenger in an interview, “it has to have credit for household needs and business growth,” and Khan Bank, which has “had deposit inflows and finds (itself) with excess liquidity”, is ready to lend, offering newer and better products, restructuring loans to help borrowers in temporary distress, and lowering interest rates in a number of areas.
Mr. Morrow said Khan Bank had “made money every month through these difficult times”. Taking advantage of its good health, the bank, by liberalizing credit, hopes “to set an example for other banks that have liquidity, and encourage them to also step up and announce increased lending”. Referring to Moody’s recent decision to downgrade three Mongolian banks, Mr. Morrow considered it “inappropriate” of the rating agency to “put these three banks in the same category based on the country rating”, as that “rating is not related to the performance of the individual banks”. He reaffirmed that “Khan Bank’s capital and liquidity continue to grow, and we continue to be profitable”.
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