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BRIEF-Fitch says Mongolian banks are still under pressure despite IMF deal
March 6, 2017 / 1:44 AM / 9 months ago

BRIEF-Fitch says Mongolian banks are still under pressure despite IMF deal

March 5 (Reuters) -

* Fitch: Mongolian banks still under pressure despite IMF deal

* Fitch on Mongolian banks - Expect banks to continue to use foreign-currency swap facilities provided by Bank of Mongolia (BOM)

* Fitch - Maintain a negative sector outlook for Mongolian banks, as weak operating environment continues to put pressure on their financial profiles

* Fitch - Asset quality likely to deteriorate further at banks with higher exposure to vulnerable borrowers - mining, retail and manufacturing sectors

* Fitch - Do not expect BOM’s asset-quality review to reveal significant capital shortfalls at Fitch-rated banks

* Fitch on Mongolian banks - Profit will also be constrained by weak loan growth, which we only expect to recover in medium term, if economy stabilises

* Fitch - Phasing-out of low-margin government-subsidised lending is unlikely to fully offset drags on profit

* Fitch - Tighter enforcing of laws and regulations could also create some strains in banking sector Source text for Eikon:

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