Regulatory Alerts2013-09-13
Regulation on Issuing Intraday Credit by Central Bank
The Bank of Mongolia issued this regulation to govern intraday credit facilities provided to commercial banks to ensure the smooth operation of the interbank payment and settlement system. The framework establishes interest-free intraday repo agreements where banks pledge securities as collateral and must repay the liquidity before the Banknet system closes on the same working day. It details the application procedures via the Interbank Electronic Trading System, the conversion of unpaid intraday credit into overnight financing, and the foreclosure of collateral in cases of default.
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