Case studies

Paper

Country Case Study Agricultural Bank of Mongolia

GTZ, Eschborn (2003)

This study analyses the Agricultural Bank of Mongolia (AgBank), a state-owned financial institution. AgBank faced a wide range of problems in the past and up until 1999 was in a desperate condition. However, it was not closed down because politicians realised the importance of the institution for bringing banking to rural Mongolia. This study describes the stages AgBank went through, the steps taken to return to sound banking and the prospects of the institution by looking at it strengths and weaknesses. The study will show that public banks are not bad performers or prone to distort the market per se. Their performance depends on the market situation, the business principles applied and the role played by the owner.