XacBank (Mongolian: ХасБанк) is a Mongolian

banking A bank is a financial institution that accepts Deposit account, deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital m ...

and financial services company headquartered in

Ulaanbaatar Ulaanbaatar is the Capital (political), capital and List of cities in Mongolia, most populous city of Mongolia. It has a population of 1.6 million, and it is the coldest capital city in the world by average yearly temperature. The municipa ...

. XacBank was founded in 2001 following the

merger Mergers and acquisitions (M&A) are business transactions in which the ownership of a company, business organization, or one of their operating units is transferred to or consolidated with another entity. They may happen through direct absorpt ...

of Goviin Ekhlel LLC and X.A.C. LLC, the two largest non-banking financial institutes in Mongolia. XacBank is organized into three main business groups:

Retail Banking Retail banking, also known as consumer banking or personal banking, is the provision of services by a bank to the general public, rather than to companies, corporations or other banks, which are often described as wholesale banking (corporate ...

; Business Banking; and

Corporate Banking Wholesale banking is the provision of services by banks to larger customers or organizations such as mortgage brokers, large corporate clients, mid-sized companies, real estate developers and investors, international trade finance businesses, i ...

. XacBank currently has a branch network of 86 retail and two business service branches, along with digital channels including ATMs,

internet The Internet (or internet) is the Global network, global system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and devices. It is a internetworking, network of networks ...

and mobile banking serving 700,000 customers in Mongolia. XacBank is owned by TenGer Financial Group LLC.

History

1998–2001

XacBank was established in late 2001 as a result of merger of the two largest non-banking financial institutes in Mongolia, Goviin Ekhlel LLC and X.A.C LLC. XacBank was the first non-banking financial institute in Mongolia to receive a banking license from the

Bank of Mongolia The Bank of Mongolia, referred to as ( ) in Mongolian language, Mongolian, is the central bank of Mongolia. The main objective of the Bank of Mongolia is to ensure stability of the Mongolian tögrög. Within its main objective the Bank of Mongo ...

, which is the nation's is

central bank A central bank, reserve bank, national bank, or monetary authority is an institution that manages the monetary policy of a country or monetary union. In contrast to a commercial bank, a central bank possesses a monopoly on increasing the mo ...

. Goviin Ekhlel LCC was established by Mercy Corps in December 1999 with funding from the

United States Agency for International Development The United States Agency for International Development (USAID) is an agency of the United States government that has been responsible for administering civilian foreign aid and development assistance. Established in 1961 and reorganized in 1998 ...

as a non-banking financial institute serving small and medium-sized enterprises. X.A.C. LLC began in 1998 under the Micro Start Mongolia Project under

United Nations Development Program The United Nations Development Programme (UNDP) is a United Nations agency tasked with helping countries Poverty reduction, eliminate poverty and achieve Sustainable development, sustainable economic growth and Human development (economics), hu ...

and later transformed into Mongolia’s first non-banking financial institution by uniting the financial services activities of six local

NGOs A non-governmental organization (NGO) is an independent, typically nonprofit organization that operates outside government control, though it may get a significant percentage of its funding from government or corporate sources. NGOs often focus ...

2001–10

After its establishment, in 2002 XacBank established a presence in every Mongolian province. XacBank introduced the “Future Millionaire” children’s savings which later became a National Brand serving approximately a fifth of children in Mongolia. In 2004,

International Finance Corporation The International Finance Corporation (IFC) is an international financial institution headquartered in Washington, D.C. and a member of the World Bank Group that offers investment, advisory, and asset-management services to encourage private ...

invested in XacBank, the first Mongolian commercial institution to receive such funding. The bank joined the

Global Reporting Initiative The Global Reporting Initiative (known as GRI) is an international independent standards organization that helps businesses, governments, and other organizations understand and communicate their impacts on issues such as climate change, human rig ...

and

United Nations Global Compact The United Nations Global Compact is a non-binding United Nations pact to get businesses and firms worldwide to adopt sustainable and socially responsible policies, and to report on their implementation. The UN Global Compact is the world's ...

principles to improve its

corporate transparency Corporate transparency describes the extent to which a corporation's actions are observable by outsiders. This is a consequence of regulation, local norms, and the set of information, privacy, and business policies concerning corporate decision-mak ...

and

social responsibility Social responsibility is an ethical concept in which a person works and cooperates with other people and organizations for the benefit of the community. An organization can demonstrate social responsibility in several ways, for instance, by do ...

. It has been named as one of the top 100

microfinance Microfinance consists of financial services targeting individuals and small businesses (SMEs) who lack access to conventional banking and related services. Microfinance includes microcredit, the provision of small loans to poor clients; saving ...

institutions globally by

Forbes magazine ''Forbes'' () is an American business magazine founded by B. C. Forbes in 1917. It has been owned by the Hong Kong–based investment group Integrated Whale Media Investments since 2014. Its chairman and editor-in-chief is Steve Forbes. The c ...

in 2007. XacBank was the first bank in Mongolia to receive international ratings from Moody’s Investors Service as well as the first bank to establish a customer contact center. In 2008, XacBank launched ATM, internet and message banking services. In 2009, XacBank expanded outside Mongolia when it invested in Molbulak Microfinance Institution in

Kyrgyzstan Kyrgyzstan, officially the Kyrgyz Republic, is a landlocked country in Central Asia lying in the Tian Shan and Pamir Mountains, Pamir mountain ranges. Bishkek is the Capital city, capital and List of cities in Kyrgyzstan, largest city. Kyrgyz ...

References

MicroFinanceFocus.com

External links

XacBank.com
XacBank official site
TenGerFinancialGroup.com
TenGer Financial Group official site {{DEFAULTSORT:Xacbank Banks of Mongolia Banks established in 1998 Companies based in Ulaanbaatar

History

1998–2001

2001–10

See also

References

External links