Institutional framework of macroprudential policy
In January 2018, amendments to the Central Bank Law were adopted. Pursuant to Article 221 of the Law, the Bank of Mongolia implements macroprudential policy with the aim of identifying, assessing, and mitigating risks that could adversely affect the implementation of monetary policy and the stability of the banking and financial system. The Monetary Policy Committee has a legal mandate to make macroprudential policy decisions, and since October 2025 has transitioned to holding regular macroprudential policy decision-making meetings twice a year.
The institutional framework for formulating and implementing macroprudential policy plays a crucial role in ensuring its effective implementation in Mongolia. Collaboration and coordination among the Bank of Mongolia (Central Bank), the Financial Regulatory Commission, and the Ministry of Finance are of vital importance.
The Bank of Mongolia is responsible — within the scope of its mandate to protect the interests of depositors and customers and to strengthen the reliability of the banking system — for issuing regulations, rules, guidelines, methodologies, and other relevant decisions related to ensuring the capital adequacy and solvency of commercial banks, regulating their operations, and taking enforcement measures, as well as for monitoring their implementation.
The Financial Regulatory Commission regulates non-bank financial sectors, and within this scope is responsible for ensuring the stability of financial markets, regulating financial services, monitoring compliance with relevant laws and regulations, and protecting the interests of investors and clients. Its regulatory purview covers the securities market, insurance market, non-bank financial institutions, and savings and credit cooperatives.
The Ministry of Finance exerts a significant influence on financial markets through fiscal and tax policy.