Regulatory Alerts2003-05-24
Temporary Regulation on Issue of Guarantees by Banks
The Bank of Mongolia has issued a temporary regulation establishing comprehensive rules for the licensing, issuance, and management of bank guarantees. The directive mandates that banks obtain central bank approval, cap total guarantee exposure at the institution's capital, and restrict single-borrower exposure to 20 percent of capital. Financial institutions must maintain detailed off-balance sheet records, submit monthly reports to the Supervision Department, and implement internal controls to ensure compliance with prudential standards.
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