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- Country Name: Mongolia
- Assets: MNT 4,053,153,286
- Profits: MNT 49,827,820
- Ownership: 83.66% Golomt Financial Group LLC,
10.04% Swiss MO,
4.96% Trafigura Beheer B.V.,
- Date Modified: Jul-2015
Syndicated Analyses:Moody's Corporation "Moody's assigns B2 global local currency long-term deposit rating to Golomt Bank" 20-May-2015:
The B3 foreign currency rating is driven by the bank's BCA of b3 and does not incorporate any probability of systemic support. The ratings are constrained by Mongolia's macro profile, which Moody's assesses as "very weak (+)".
The key drivers of Golomt Bank's BCA are its: 1) Capitalization which was the highest among the rated Mongolian banks, with a tangible common equity ratio of 12.2% at end-2014. 2) Its solid deposit funding — which accounted for 69% of its total funding — because of its solid franchise as Mongolia's third-largest bank by assets. By contrast, deposit funding comprised 57% of total funding for the Trade and Development Bank of Mongolia (B2 local currency deposit rating/b3 BCA, negative), the largest Mongolian bank by assets, and 50% at the fifth-largest bank in Mongolia by assets, XacBank (B2 local currency deposit rating/b3 BCA, negative). 3) Asset quality constrained by high customer concentration and the highest ratio of problem loans to gross loans among the rated Mongolian banks — 5.9% at end-2014. The portfolio concentration is a result of the bank's position as one of the biggest corporate lenders in Mongolia, which has a relatively narrow corporate base. Golomt Bank's exposure to its top-20 borrowers accounted for approximately 182% of its total capital at end-2014. The bank's negative ratings outlook reflects the challenging operating environment for banks in Mongolia, as well as the negative rating outlook assigned to the Government of Mongolia (B2, negative).Golomt Bank News "Standard & Poors Assigns Credit Rating Of 'B' To Golomt Bank" 16-Jul-2014:
Standard & Poor's Ratings Services re-stated and lowered Golomt Bank’s long-term issuer credit rating to 'B' from 'B+ and affirmed its short-term issuer credit rating as ‘B’. The outlook is negative, which reflects Standard & Poor’s view that economic risks in Mongolia could increase over the next 12 months and pressure the ratings on the bank.
the Golomt management has focused on its future development, after resolving corporate governance issues among the bank's major beneficiary shareholders and the bank management in 2013. The bank is also strengthening its internal control procedures and policies to address corporate governance and risk management issues identified in 2013Wikileaks Public Library of US Diplomacy "Treasury Das Glaser Presses Illicit Finance, North Korean Concerns With Mongolian Government And Banks" 19-Jun-2006:
A Golomt Bank representative described the problems it faced as a result of a recent North Korean banking transaction (the February transfer of US$1 million and Yen 2 million in cash). Golomt has cut its relationships with DPRK firms and banks.