XacBank (Mongolian: ХасБанк) is a Mongolian

banking A bank is a financial institution that accepts 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 markets. Because ...

and financial services company headquartered in

Ulaanbaatar Ulaanbaatar (; mn, Улаанбаатар, , "Red Hero"), previously anglicized as Ulan Bator, is the capital and most populous city of Mongolia. It is the coldest capital city in the world, on average. The municipality is located in north ce ...

. XacBank was founded in 2001 following the

merger Mergers and acquisitions (M&A) are business transactions in which the ownership of companies, other business organizations, or their operating units are transferred to or consolidated with another company or business organization. As an aspect ...

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. Banking servi ...

;

Business Banking A commercial bank is a financial institution which accepts deposit (finance), deposits from the public and gives loans for the purposes of consumption and investment to make profit (economics), profit. It can also refer to a bank, or a division ...

; 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, ins ...

. 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 system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and devices. It is a '' network of networks'' that consists of private, pub ...

and

mobile banking Mobile banking is a service provided by a bank or other financial institution that allows its customers to conduct financial transactions remotely using a mobile device such as a smartphone or tablet. Unlike the related internet banking it uses ...

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. Goviin Ekhlel LCC was established by

Mercy Corps Mercy Corps is a global non-governmental, humanitarian aid organization operating in transitional contexts that have undergone, or have been undergoing, various forms of economic, environmental, social and political instabilities. The organizatio ...

in December 1999 with funding from the

United States Agency for International Development The United States Agency for International Development (USAID) is an independent agency of the U.S. federal government that is primarily responsible for administering civilian foreign aid and development assistance. With a budget of over $27 bi ...

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)french: Programme des Nations unies pour le développement, PNUD is a United Nations agency tasked with helping countries eliminate poverty and achieve sustainable economic growth and human dev ...

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) or non-governmental organisation (see spelling differences) is an organization that generally is formed independent from government. They are typically nonprofit entities, and many of them are active in h ...

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 that offers investment, advisory, and asset-management services to encourage private-sector development in less developed countries. The IFC is a member of t ...

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 righ ...

and

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

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-maki ...

and

social responsibility Social responsibility is an ethical framework in which an individual is obligated to work and cooperate with other individuals and organizations for the benefit of the community that will inherit the world that individual leaves behind. Social ...

. It has been named as one of the top 100

microfinance Microfinance is a category of financial services targeting individuals and small businesses who lack access to conventional banking and related services. Microfinance includes microcredit, the provision of small loans to poor clients; savings ...

institutions globally by

Forbes magazine ''Forbes'' () is an American business magazine owned by Integrated Whale Media Investments and the Forbes family. Published eight times a year, it features articles on finance, industry, investing, and marketing topics. ''Forbes'' also repo ...

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,, pronounced or the Kyrgyz Republic, is a landlocked country in Central Asia. Kyrgyzstan is bordered by Kazakhstan to the north, Uzbekistan to the west, Tajikistan to the south, and the People's Republic of China to the east. ...

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