AFC and our strategic partner ADG (Academy of German Cooperative Banks, Montabaur) have been awarded a technical assistance contract by KfW to assist XacBank in its efforts to enhance the key areas of risk management. The consulting services will comprise the development of improved policies and procedures, state-of-the-art risk measurement tools, enhanced reporting systems and related staff training in three units of the Bank: Integrated Risk Management Division, Internal Audit Division and Treasury Department. AFC/ADG started the project at the beginning of December with a first mission comprising of four risk management, treasury and internal audit experts as well as the AFC project manager.

 

With this project AFC/ADG will ensure that appropriate integrated risk management foundations are put in place to enable the bank to grow and achieve its business objective in becoming a "dynamic leader in providing inclusive financial services and innovative products" in Mongolia. So far, XacBank has become one of the dominating banks in the Mongolian microlending market in terms of the number and volume of loans outstanding. It has furthermore a privileged outreach through its comparatively large domestic network and its mobile banking services which are provided through a network of agents and merchants throughout the country.

 

 

XacBank Head Office in Ulan Baatar

 

Background information XacBank XacBank - the first commercial bank in Mongolia with a social mission - was created as the result of a merger of the two largest non-bank financial institutions in Mongolia, in October 2001. XacBank is a leading provider of development finance in Mongolia, delivering innovative products and inclusive services to all the regions of the country through a rural presence and extensive network of 67 branches. Its clientele represent not only the lower-income segment of the market - micro entrepreneurs - but also a growing number of small and medium sized enterprises. XacBank's core products include a wide array of current and savings accounts, various credit and lending products, as well as both domestic and international remittances. The Bank boasts also an ever-growing range of innovative products in the market, including mobile banking services, rural franchisee service for cooperatives, herder loans, household loans and financial leasing, as well as new residential housing loans.

 

AFC and ADG have been implemented projects in Mongolia during the last couple of years. A long-term project from 2005-2008 supporting the institutional development of the Mongolian Cooperative Training and Information Center has been successfully implemented by AFC. ADG has managed a GTZ-funded project "Support of Banking Training Centre of Bank of Mongolia" since 2005.

 

Thus, we look forward to new challenges in Mongolia and are pleased to cooperate with XacBank which is well known in Mongolia and other countries as well.

 

For further information please refer to:

 

 

Susan Gille
Project Manager
Financial Sector Development
Susan.gille@afci.de