The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms & Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

TransBank merger serves as model for Mongolia’s financial sector

Illustration: Getty

The merger of Credit Bank with TransBank offers a template for Mongolia’s financial industry, which is ripe for more consolidation and better governance.

For a sense of what’s afoot in Mongolian banking, take a look at TransBank.

It started life as Transport and Development Bank with a simple, direct slogan: Your financial partner to accelerate development. Its initial emphasis was the mining, agriculture, construction, transportation and processing sectors, with a focus on small and medium-sized enterprises.

But in August 2021, TransBank took the decisive step to increase its local footprint and move up the rankings: Mongolia’s seventh-largest financial institution merged with Credit Bank, the ninth largest, to become a joint-stock company.

It was something of a first for the $14 billion economy – not the merger itself, but the rationale behind it.

“This was actually the first Mongolian merger not related to the performance of a bank – it’s about growth,” Erkhembayar Baltsukh, TransBank’s deputy CEO, tells Asiamoney.

In other words, this wasn’t a forced marriage demanded by regulators to stop financial bleeding amongst weak institutions.

“Both banks have been performing well,” Baltsukh adds. “We complied with all the regulations and requirements set by the central bank. It's really different than the previous merger instances of commercial banks in the Mongolian banking sector.”

It’s also a sign of financial maturity. The authorities have prodded small and medium-sized banks to adopt more international practices in preparation for closer financial links around the globe.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?


William Pesek is a freelance contributor for Asiamoney, based in Tokyo.
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree