Draft on development bank completed

The working group established by the Government to prepare a draft plan to set up a development bank has finished its work. The draft was presented to the Government earlier last week.

The draft proposes to keep the management of the bank independent of the Government. It will work to help develop heavy industry, infrastructure and a knowledge-based economy and will act in cooperation with commercial banks. There is no reason to fear that the development bank will eventually push commercial banks out of the market, E.Tsogbayar, a member of the working group, has said. He has explained that the new bank will actually help commercial banks in financing big projects and in guaranteeing large loans.

Development banks began to appear after World War II and were most successful in Japan and Germany. If Mongolia gets one, its banking system will be diversified.