Regulatory Alerts2019-06-13
Draft Regulation on Setting and Monitoring Prudential Ratios to Banking Operation
The Bank of Mongolia issued this draft regulation to establish minimum prudential requirements for banks, including capital adequacy, liquidity, net open position, and concentration risk limits. The document defines specific calculation methodologies for Tier-1 and total capital ratios, mandates a 25 percent minimum liquidity ratio, and sets caps on foreign exchange exposure and large loan concentrations. It further outlines a tiered system of remedial actions and restrictions on dividend distributions and executive compensation for institutions that breach these capital buffers or minimum requirements.
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