[3][4] The main objective of the Bank of Mongolia is to ensure stability of the Mongolian tögrög.

Consequently, according to the decision of Ikh Khural, the Government of Mongolia issued a resolution to conduct monetary reform on February 22, 1925.

Since its establishment, the Bank of Mongolia has been influencing and contributing efforts on the economy of the country, in maintaining the monetary policy aimed at the stabilisation of the value of the currency, and reduction of the inflation rate in the unstable transitional period.

In May 2010, the Bank of Mongolia tightened its monetary policy stance by raising its policy rate by 1.0 percentage points to 11.00 percent to bring CPI inflation down, to reduce the growth of credit and monetary aggregates.

Banks’ total outstanding loans were MNT 60 billion which were issued to 1700 borrowers in 2000, compared to total outstanding loans of MNT 2,000 billion issued to 483 thousand borrowers in September, 2007.

Profitability of banks was high compared to most advanced countries, which have return on assets ratio of 2.7 per cent in 2007.