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. 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 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.

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 invested in XacBank, the first Mongolian commercial institution to receive such funding. The bank joined the Global Reporting Initiative and United Nations Global Compact 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. 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 in 2007. XacBank was the first bank in Mongolia to receive international ratings from

Moody’s Investors Service Moody's Investors Service, often referred to as Moody's, is the bond credit rating business of Moody's Corporation, representing the company's traditional line of business and its historical name. Moody's Investors Service provides international ...

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