The working group
established by the Government to prepare a draft plan to set up a development
bank has finished its work. The draft was presented to the Government earlier last
week.

The draft proposes to keep
the management of the bank independent of the Government. It will work to help
develop heavy industry, infrastructure and a knowledge-based economy and will
act in cooperation with commercial banks. There is no reason to fear that the
development bank will eventually push commercial banks out of the market, E.Tsogbayar,
a member of the working group, has said. He has explained that the new bank will
actually help commercial banks in financing big projects and in guaranteeing
large loans.

Development banks began to
appear after World War II and were most successful in Japan and Germany. If Mongolia gets
one, its banking system will be diversified.