The Trade and Development Bank celebrates its 20th anniversary this year. In an interview with The Mongol Messenger, its President, Randolph S. Koppa, has expressed confidence that the estimated rise in the country’s GDP will see significant growth in the banking sector, with TDB continuing to be one of the leaders. “There will be challenges” in maintaining profitability and obtaining the increase in the capital base to meet the growth, but he saw the future as “very positive” overall.

Saying that “banks have not yet realized their full role in the economy”, Koppa asserted

TDB has been Mongolia’s “international financial gateway”, a leader in handling the country’s trade and investment flows. It has relations with over 80 major international financial institutions, was the first commercial bank here to be rated by Moody’s, and was the first Mongolian company to raise funds on the international public debt market.

TDB has passed through the global and local economic downturn with solid financial indicators, earning MNT15 billion in 2009, down only slightly from the previous year. The level of non-performing loans has been coming down since last November and the bank has successfully repaid its USD75-million international bond issue. The Mongolian economy in 2010 should be quite promising and TDB, continuously monitoring economic and market conditions, will adjust its business activities accordingly.

Noting that the investment climate in Mongolia is now favorable, Koppa said “the economy has stabilized, exports and foreign exchange reserves are up, the currency has been stable, and inflation has been under control”. The mining sector expansion and the new mining projects promise a significant GDP growth in the next few years. New laws are being passed to address many needs in the business and financial sectors, and action is being taken to improve the functioning of the banking sector and the stock exchange.