Category Archives: Public Interest

New Criteria for Savings and Credit Cooperative Activity: A Comprehensive Guide to Financial Health and Risk Monitoring



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On June 5, 2024, Mongolia’s Financial Regulatory Commission passed Resolution No. 286, introducing new “Criteria for Appropriate Ratios of Savings and Credit Cooperative Operations.” This critical update requires savings and credit cooperatives to assess and mitigate risks by adhering to four essential groups of indicators:

  1. Asset Quality and Security Indicators
  2. Indicators of Efficient Financial Structure
  3. Indicators of Costs and Expenses
  4. Indicators of Ability to Quickly Execute Payments

Each group has specific methodologies designed to ensure precise evaluations. These indicators collectively measure the financial health and risk exposure of cooperatives, leading to an overall assessment that is vital for operational stability.

Quarterly Reporting Obligations

Savings and credit cooperatives must calculate these ratio indicators every quarter, submitting detailed reports to the Financial Regulatory Committee by the 10th of the month following each quarter. The reports include various appendices covering areas such as:

  • Lending and Loan Allocation
  • Deposit Interest Rate Surveys
  • Large Borrower and Affiliated Entity Loan Reports
  • Capital Contributions and Large Depositor Reports
  • Financial Structure Efficiency
  • Income and Expense Ratios
  • Payment Execution Capabilities

The goal is to ensure transparency, maintain the financial stability of the cooperative, and protect member interests.

Protecting Financial Stability

By implementing these guidelines, the Financial Regulatory Commission is aiming to safeguard the integrity of savings and credit cooperatives in Mongolia. This initiative enhances the trust and security within the country’s financial system, ensuring that cooperatives operate effectively while minimizing risks.

#MongoliaFinancialRegulations #SavingsAndCreditCooperatives #FinancialRiskManagement #CooperativeFinancialHealth #FRCResolution286 #MongolianCooperativeStandards #FinancialStability

Mandatory Military Service in Mongolia



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Soldiers’ Day in Mongolia was recognized on March 18th.

In Mongolia, one year of military service is compulsory for all male citizens between 18 and 25 years of age. Male citizens must perform conscript service of 12 months in armed forces or border forces. However, laws also provide alternative ways to perform military service. Male citizens, who are of age of military service, due to religious grounds or conscientious objections may opt for alternative service of 24 months by assisting in humanitarian activities, or assisting in combating the natural disasters, or assisting the border services. For this alternative service the conscript may continue his life as usual but must be ready at all times to serve when summoned for duty by military staff of relevant province, city or district.

Another alternative way of performing military services is available for college and university male students – a program called “Student-soldier”, an accelerated training and performance of military service. “Student-soldier” program allows first-year college and university students to take general military preparation and training classes over the course of two months of classroom training and two months of field training.

For those who has reached the maximum age of military service and due to reasons, specified in law, did not perform military service must pay the cost of one year’s training and upkeep for a soldier. The amount of payment is set by the Government annually. The amount of payment for 2017 was equal to 5 052 230 (Five million fifty-two thousand and two hundred thirty) MNT.

A voluntary (contractual) military service is available for male citizens, who has finished conscript service, and female citizens with military professions. The Government approves the list of military professions. Also, students, who attended military school and obtained military profession, are considered to have duly performed military service; and may be recruited for contractual military service.

Laws also provide cases for exemption and temporary deferral from military service. Pursuant to laws exemption cases allow full exemption from conscription for military service, while temporary deferrals exempt from conscription until next year.

In Mongolia performance of military service is one of key requirements for hiring a public (government) officer. However, only performance of compulsory conscript service, completion of “Student-soldier” program and voluntary military service shall be considered for hiring public officer.