Savings insurance proposed to replace Government guarantee
The Mongol Bank and the Ministry of Finance have established a working group to study the introduction of a savings insurance system to protect account holders in banks. This will replace the present Government guarantee, and would also reduce pressure on the budget.
Parliament guaranteed the security of all bank deposits in November, 2008 to ensure commercial banks were not hit by panic withdrawal during the economic crisis. Some limits were placed on the guarantee last month. These apply to accounts where the money has been transferred from a foreign bank, current account balances, and to accounts that are paid interest at a rate higher than the Mongol Bank policy interest rate.
Parliament guaranteed the security of all bank deposits in November, 2008 to ensure commercial banks were not hit by panic withdrawal during the economic crisis. Some limits were placed on the guarantee last month. These apply to accounts where the money has been transferred from a foreign bank, current account balances, and to accounts that are paid interest at a rate higher than the Mongol Bank policy interest rate.
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