Director General of the department Mr. Damdinsuren Ts.
Core functions of the Department:
The Banking Supervision Department, in line with the mandate of the Bank of Mongolia under the Law on the Central Bank (Bank of Mongolia), exercises regulatory oversight of banking operations to promote banking sector stability and protect depositors’ interests.
The Department is responsible for licensing of banks, including the issuance and revocation of authorizations to establish banks and conduct banking activities. It sets and enforces prudential requirements, including capital adequacy and liquidity standards, and establishes principles for sound corporate governance and organizational structures.
In carrying out its mandate, the department develops and implements a regulatory framework, applies supervisory review and enforcement measures, and imposes corrective actions where necessary. It also licenses and supervises credit information service providers.
Banking Policy Division:
The Banking Policy Division conducts research and analysis to strengthen the supervisory framework and enhance the legal and regulatory environment in line with international standards. The division develops regulatory policies, guidelines and methodologies, and promotes the adoption of international supervisory principles and best practices within the domestic banking system.
The Banking Policy Division is also responsible for the collection, consolidation, storage, processing, and analysis of financial statements and supervisory data. It facilitates the exchange of relevant information with government authorities, international organizations, and multilateral development institutions. Drawing on supervisory data and assessments, the division formulates policy proposals and implements system-level supervisory measures, as well as targeted actions for individual banks.
Supervision Division:
The Supervision Division regularly assesses banks’ compliance with banking laws and regulations and their adherence to prudential standards set by the Bank of Mongolia, based on the financial statements and regulatory reports through both on-site and off-site supervision and takes appropriate supervisory measures in accordance with applicable legislation.
Furthermore, the division implements supervisory measures related to anti-money laundering and combating the financing of terrorism (AML/CFT) in line with domestic legislation and international standards, facilitates evaluations of compliance with international standards. It is also responsible for administering and deciding on applications related to bank licenses and permits in accordance with applicable laws and regulations.
Credit Information Division:
The Credit Information Division, within the framework of the Law on Credit Information and relevant legal acts, is responsible for formulating and maintaining a credit information database, ensuring its reliable and continuous operation, and supervising credit information activities. In addition, it supervises and decides on matters related to licenses for credit information activities in accordance with laws and regulations, contributes to the improvement of the sector’s legal and regulatory framework, and promotes the development of the credit information system in line with international standards.