Objects of the Credit Department in National Investment bank:

The lending policy of National Investment Bank is to determine its main fields of activities for lending the cash asset of the shareholders and clients to legal entities and individuals on behalf of its own name in accordance with law of Mongolia, to build an efficient controlling system of loan relations, to keep loan risks at possible minimum, and to ensure the solvency and profitability of the bank.

Strategy for loan portfolio

1. The loan portfolio shall match with the bank’s liquidity and 60% of the total assets shall be placed as loans.
2. We will maintain the bad loan percentage in the total loans at 0%. In case bad loan exceeds this limit we shall take rapid measures according to respective rules.
3. We will not finance any activities or industries involved with illegal undertaking

We shall fix interest rate each type of loan and shall introduce the lowest interest rates in loan market.

Trend market

The target markets of National Investment Bank are:

• Mining industry
• Property and securities market
• Equipment and machinery
• Construction and construction materials
• Import of consumer goods
• Oil import
• Mortgage

The investment department of the bank is conducting different kinds of activities such as project study and analysis, investment, issues of securities for companies and organizations and financial consulting etc. The investment department is planning to provide diversified services and timely information of high importance to our clients in regards of domestic and international markets of our bank, its economy and foreign relations.

Lending & Repayment

National investment Bank has financed Mining sector, Equipment and mechanism sector, Construction sector and Mortgage market. Loan outstanding were 976.8 million tugrugs in the end of 2005, but loan’s outstanding have been increased by 6.2 billion tugrugs reaching 7.5 billion tugrugs in October 2006 and 7.1 billion tugrugs in November 2006.
Our bank has been lending the loans with interest rates minimum in Mongolian banking sector, long-term mortgage loans to individuals and our mortgage loans reached 303.0 million tugrugs in 2006. 

Figure. Loan outstanding; Performance in 2006.        December 2006

Our bank lended some large companies in 2006. Those companies are national producers, which is Sharyn gol company, Monroad company,  Western Mongolia – International company, Gem international company and Rich Mogol company.

Sharyn gol company is one of the major  coal mining companies of Mongolia. It mines coal of 600.0 thousand tones every year, and  provides central provinces (aimags) with its quality coal. Our bank has financed Sharyn gol company by investment loan.

Monroad company executed the road work of 50 km from Duut mountain to Murun soum of Huvsgul province as a part of the “Millennium road in Mongolia”.  It is one of the leading companies in this sector.

Western Mongolia – International company is one of the leading companies in Hovd aimag (western province). This company’s activities are meat preparation, meat trade and meat canning.  Western Mongolia company  has won the popular title of  “Favourable for customers ” company. 

Rich Mogol company is one of leading companies in the gold mining sector from 1996. Our bank has financed Rich Mogol company by equipment’s investment loan.

Gem International company is one of leading manufacturing companies. This company boasts with its brand products.