It has been officially announced that the economy grew by 6.1% at the end of February over the same period last year. If figures from the shadow economy were included, the real growth figure could well be 10%. There can be no such speculation over figures to do with commercial banks. Their assets have increased by 55% or MNT4.5 trillion in comparison with February, 2010. The total amount they have given as loan has increased by 25% or MNT3 trillion. Not much should be read into how much capital banks have, but the increase in loans does indicate the economy is recovering.
It has also been revealed that 90% of the total savings in banks is in the name of only 3% of account holders. This does include some foreign sources, but mostly they are domestic accounts. That the more well-to-do 3% of Mongolians have earned and saved more does not mean an improvement in the economic situation of the overall population.
The rise in saving certainly shows that trust in commercial banks is returning, but their increased liquidity also raises fears of inflation. Right now, the rate of inflation is 13.8% but the International Monetary Fund feels this could reach 25% this year.
Bankers say they are granting more loans and repayment rates have also improved.
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2011-03-30 09:30:09
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