The Financial Stability Council was established by joint decree dated May 9, 2007 by the Central Bank of Mongolia (BoM), Ministry of Finance (MoF) and the Financial Regulatory Committee (FRC).
The primary objectives of the Council include safeguarding the financial stability of the markets by determining any kind of financial risks and managing them within the current laws and regulations.
The Council is the first ever body of this nature established in Mongolia. Its Steering Committee consists of the Governor of the Central Bank, the Minister of Finance, and the Chairman of the Financial Regulatory Committee.
There is a research unit responsible for studying the solvency related issues in banking and non-bank financial institutions sectors, securities and insurance markets. The research unit regularly discloses its findings to the general public to help individuals and entities make rational financial decisions.
The Steering Committee of the Financial Stability Council has regularly scheduled meetings every quarter to assess internal and external factors underlying financial risks and formulate policies to address them.
The Financial Stability Council has been set up in line with international best practices and is keen to co-operate with other international financial and standardization institutions. In order to boost the competitiveness of the Mongolian banking and financial sectors in the international markets, the FSC has been introducing best practices in banking, financing, accounting and auditing.
Reports on balance sheets and other documents analyzing financial institutions is released in the form of a Financial Stability Report every 6 months.